Canada will meet NATO’s 2% defense spending target by early 2026, Prime Minister Mark Carney announced on Monday. That’s five years ahead of schedule. The country will also start shifting its military spending away from the United States and toward Europe.
For everyday Canadians, this means more money will be invested in modernizing Canada’s aging defense systems—submarines, ships, aircraft, and Arctic surveillance. But it also means a shift in how Canada sees itself: less as America’s tag-along, more as an independent player in a rapidly changing world.
Right now, Canada spends around 1.33% of its GDP on defense, according to NATO data. So this is a big jump. “Our military gear is outdated. Only one of our four submarines even works,” Carney said. “We’re too dependent on the U.S.”
That dependence? It’s costing more than just cash. Carney warned that Washington no longer plays the global role it once did. He said the U.S. is “monetizing its hegemony”—translation: charging allies for access while doing less of the heavy lifting.
“The U.S. used to be the world’s anchor,” Carney said. “Now it’s pulling away—and asking us to pay for the rope.”
And Canada is not alone. European allies are also ramping up defense spending. NATO Secretary-General Mark Rutte said many are now backing Donald Trump’s demand for 5% of GDP to go toward defense—way above the old 2% goal.
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So where’s Canada spending that extra cash?
Carney outlined major investments in new submarines, ships, vehicles, artillery, drones, and radar systems. He also hinted that Canada may ditch the U.S.-made F-35 jets and buy European models instead. “Three-quarters of our defense spending currently goes to America,” he said. “That will change.”
And yes—this shift has a political edge. Trump’s open call to make Canada the 51st U.S. state still stings north of the border. Carney, who beat Trump-friendly candidates in the last election, isn’t exactly holding back. “A new imperialism threatens,” he said. “If we’re not at the table, we’ll be on the menu.”
It’s a strong statement from a leader who knows the stakes. Geography won’t shield Canada anymore, Carney warned, especially as war in Ukraine has reignited old global threats.
Canada and the EU are already in talks to team up on defense procurement, looking to build a less U.S.-dependent military future together. In Carney’s words: “We stood shoulder to shoulder with America for decades. But that era is ending.”
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