Canada ramps up homegrown defence sector as ties with US strain
Canada is boosting defence spending and urging local firms to supply the military as relations with the United States deteriorate.
Facing escalating tensions with Washington, Canada’s government under Prime Minister Mark Carney unveiled a defence industrial strategy that adds $60 billion in funding for the next five years, aiming to cut dependence on U.S. contractors. The program encourages domestic firms—including luxury outerwear maker Wuxly, robotics startup New Frontier Robotics and drone producer Volatus Aerospace—to develop gear, autonomous systems and unmanned aircraft for the Canadian Armed Forces and Arctic operations.
Canada is also diversifying procurement by ordering radar aircraft from Sweden’s Saab and submarines from Germany’s ThyssenKrupp. Analysts say the surge has filled defence shows and created opportunities for both Canadian and European partners, though political opposition and competition from the larger U.S. market pose challenges. The strategy projects up to 125,000 new jobs and a three-fold expansion of the defence sector within a decade.
Why it matters
It reveals Canada’s shift toward self-reliant defence production and job growth amid strained US relations.
In this story
