Canadian Prime Minister Mark Carney said the country will scale back defence spending routed to the US, stressing the model is “no longer sustainable.”
Around 70% of Canada’s military procurement currently goes to US firms, a trend Ottawa now wants to reverse by diversifying suppliers.
The shift comes amid rising geopolitical tensions and economic uncertainty, with Carney calling it part of a broader push to strengthen Canada’s independence in a changing global order.
Canada to End ‘70 Cents to US’ Defence Spending Model: Carney
Carney says reliance on American suppliers “no longer sustainable” as Ottawa eyes autonomy
Summary
Canadian Prime Minister Mark Carney has signalled a major shift in the country’s defence policy, making it clear that Ottawa will reduce its heavy reliance on the United States for military procurement.
Speaking at a Liberal Party convention in April 2026, Carney said, “The days of Canada’s military sending 70 cents of every dollar to the United States are over,” underscoring a growing push for strategic autonomy. The remark builds on months of messaging from the government that such dependence is no longer sustainable.
According to a Reuters report, nearly 70 per cent of Canada’s military capital spending currently goes to US suppliers. Carney has framed this as a structural issue, arguing that Canada must diversify its defence partnerships and strengthen domestic capabilities in response to shifting global dynamics.
The announcement comes against the backdrop of rising geopolitical tensions due to the joint military campaign of US and Israel against Iran, trade uncertainties and rapid technological changes, including advancements in artificial intelligence. Addressing party members, Carney described the moment as “transformational,” urging unity as Canada navigates a changing global order.
“This is not the time for politics as usual… United, we will build a Canada strong that no one can ever take away,” he said, positioning the defence shift as part of a broader strategy to reduce external vulnerabilities and assert greater economic and strategic independence.
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