Amid U.S. Weapons Expansion, Canada Builds Its Own Defence Backbone
A New Direction for Canada’s Defence Sector
Canada has taken a major step to strengthen national security and economic resilience. Prime Minister Mark Carney has launched the country’s first Defence Industrial Strategy. The long-term plan aims to boost domestic defence manufacturing and reduce reliance on foreign suppliers.
Carney said Canada must move beyond simply purchasing equipment abroad. He argued that a stronger domestic industry will support economic growth and ensure the Canadian Armed Forces receive equipment on time. Ottawa now links national security directly with economic security.
Key Targets and Economic Impact
The strategy sets clear goals for the next decade. The government wants to increase domestic defence production and procurement. Officials aim to award up to 70 per cent of defence contracts to Canadian firms, compared with roughly one-third today.
Ottawa also plans to increase defence exports by 50 per cent. The strategy could create up to 125,000 high-paying jobs across the country. The government intends to invest billions in innovation, supply-chain security, and advanced technologies.
A proposed Defence Investment Agency will streamline procurement and reduce delays. The strategy prioritizes artificial intelligence, cyber capabilities, space technology, and drone systems. Officials say faster procurement will improve military readiness.
U.S. Weapons Manufacturing and Strategic Pressure
The announcement comes amid broader global shifts in defence manufacturing. The United States continues to expand its domestic weapons production under President Donald Trump’s administration. Washington has emphasized reshoring defence supply chains and prioritizing U.S.-based manufacturers.
Canada currently spends nearly 70 per cent of its defence budget on American products. Recent U.S. tariffs and trade tensions have exposed vulnerabilities in cross-border defence procurement. Ottawa now seeks to diversify suppliers and reduce strategic dependence.
This policy shift also aligns with Canada’s efforts to meet NATO spending targets. It complements new partnerships with European defence initiatives. Officials believe diversified alliances will strengthen long-term stability.
Long-Term Strategic Implications
Analysts say the strategy could transform Canada’s industrial base if executed effectively. It may attract foreign investment and strengthen domestic supply chains. However, critics warn that building capacity will require sustained funding and political commitment.
Ottawa frames the Defence Industrial Strategy as a generational shift. The plan seeks greater self-reliance while maintaining strong alliances. Its success could redefine Canada’s defence and economic posture for decades.
