Canada to boost defence spending to meet NATO target amid global tensions
Canada to boost defence spending to meet NATO target amid global tensions
Canadian Prime Minister Mark Carney announced a significant increase in Canada’s defence spending, aiming to meet NATO’s 2% of GDP target in the 2025–2026 fiscal year. The decision comes in response to what Carney described as a “darker, more competitive world,” marked by growing threats from Russia and China, and declining U.S. dominance.
Carney criticized the United States’ reduced role in global security under President Donald Trump, saying Canada must become more self-reliant. He pledged to shift more defence spending toward domestic industry and allied nations, reducing Canada’s current dependence on U.S. military suppliers.
The government is reassessing its planned purchase of U.S.-made F-35 jets, with Sweden’s Saab Gripen as a potential alternative. A key focus will be Arctic defence, with expanded Canadian Armed Forces presence and greater integration of the Coast Guard into NATO operations.
The plan includes $9 billion in new spending this year, raising Canada’s NATO-eligible defence budget to $62.7 billion. Carney avoided detailed budget implications but assured no tax increases. Finance Minister François-Philippe Champagne also hinted at dual-use infrastructure investments in Canada’s North.
