Mark Carney Says Canada To End '70 Cents Of Every Dollar To US' Defence Spending Model

Last Updated:April 12, 2026, 16:50 IST

Carney said his government would focus on boosting domestic production and creating jobs by prioritising Canadian suppliers.

Canadian Prime Minister Mark Carney said on Saturday that Canada will end what he called the long-standing model of sending “70 cents of every dollar to the United States" for defence spending, as he set out plans to rebuild the country’s military industry and reduce dependence on Washington.

Speaking at the Liberal Party’s national convention in Montreal, Carney said Canada must strengthen its own defence base and economy. He told delegates that “the days of our military sending 70 cents of every dollar to the United States are over," a remark that drew a standing ovation.

Carney said his government would focus on boosting domestic production and creating jobs by prioritising Canadian suppliers. “We are going to build Canada strong with Canadian steel, Canadian aluminium, Canadian lumber, Canadian workers," he said, adding that economic sovereignty and national unity were key goals.

He also pointed to rising trade tensions with Washington, including tariffs introduced under US President Donald Trump. Carney said Trump’s tariffs are seen as an immediate challenge, but warned that Canada’s bigger long-term task is to maintain unity and protect the “common good" in a more uncertain global environment.

Carney highlighted the government’s “Buy Canadian" policy, saying it would help strengthen communities and reduce reliance on foreign markets. He also said Canada aims to double its non-US exports over the next decade as part of a wider shift in trade strategy.

According to a Reuters report last month, nearly 70 per cent of Canada’s military capital spending currently goes to US suppliers. A separate defence strategy document said Ottawa wants to change this structure by increasing domestic procurement and building stronger local supply chains.

The strategy also sets out ambitious long-term targets, including boosting defence industry revenues by more than 240 per cent, increasing defence exports by 50 per cent, and creating up to 125,000 jobs. It also aims to increase investment in defence research and development by 85 per cent.

Canada has also pledged to meet NATO’s 2 per cent defence spending target in the 2025–26 fiscal year, earlier than previously planned. Officials said the shift is aimed at ensuring Canada can better sustain its own defence needs and protect its sovereignty in an uncertain world.

News world Mark Carney Says Canada To End '70 Cents Of Every Dollar To US' Defence Spending Model

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