Canada vows to cut US defence reliance and boost local industry
Canada targets a stronger national industry through the "Buy Canadian" policy while reducing reliance on US defence markets and supply chains.
Canadian Prime Minister Mark Carney said on Saturday that Canada will reduce its longstanding dependence on the US in military spending and procurement, pledging to strengthen domestic industry and expand global partnerships.
Speaking at the Liberal Party’s national convention in Montreal, Carney told delegates that “the days of our military sending 70 cents of every dollar to the United States are over,” drawing a standing ovation from the audience, according to CTV.
Carney emphasised economic sovereignty and national unity, while outlining his government’s plans to prioritise Canadian-made materials and labour in future projects. “We are going to build Canada strong with Canadian steel, Canadian aluminium, Canadian lumber, Canadian workers,” he said.
Carney also pointed to growing trade tensions with Washington, including tariffs introduced under US President Donald Trump. Carney said Trump’s tariffs are widely viewed as the main immediate threat, but stressed that the greater, enduring challenge is maintaining unity and a shared sense of the common good.
Highlighting the government’s “Buy Canadian” policy, Carney said the initiative would help strengthen communities nationwide and reduce reliance on external markets. He added that Canada aims to double its non-US exports over the next decade.
The remarks came after the Office of the US Trade Representative criticised Canada’s procurement approach, calling the policy a trade irritant.
Canada’s newly outlined Defence Industrial Strategy seeks to diversify defence partnerships beyond the US, including closer cooperation with the EU and the UK. According to the strategy, nearly half of Canadian defence-related production is exported, with about 69 percent of those exports currently going to the US and other Five Eyes partners.
The plan also aims to increase the share of defence contracts awarded to domestic firms to 70 percent, reflecting Ottawa’s push to bolster national capacity in the sector.