Several American allies that have historically been big customers for U.S. weapons makers are threatening to scale back orders—looking to China and Russia instead.
Turkey recently announced it was ordering a large-scale air and missile defense system from China Precision Machinery Import and Export Corporation instead of picking a system made by an American or European firm. Making things more complicated is the fact that the Chinese company is in violation of U.S. sanctions for doing business in Iran, Syria and North Korea.
Turkey said it will cooperate in building the system with the Chinese firm as a way to help grow its own domestic defense industry.
(Read more: NATO's Turkey looks to China for missile purchase)
Turkey has been very vocal about its displeasure with how the United States has handled the civil war in Syria and wants a more aggressive approach to topple President Bashar al-Assad.
Saudi Arabia this week also voiced its displeasure with Washington over what it calls weak leadership on both Syria and Iran. Saudi Arabia wants the US to be much more hawkish against both countries. Syria's intelligence minister hinted his country would start looking elsewhere for defense and intelligence cooperation.
Ian Bremmer of the Eurasia group believes all of this means trouble for the defense sector.
"U.S. defense companies don't get to focus on the countries that want to buy their technology," he said. "They must focus on allies aligned with the United States."