Canada, responding to U.S. pressure to bolster defense expenditure, has announced plans to allocate billions more towards its armed forces, aiming to bring military spending closer to NATO targets by 2030
Prime Minister Justin Trudeau’s Liberal government unveiled a defense policy update, highlighting the importance of safeguarding the Arctic and addressing challenges posed by Russia and China as key factors necessitating increased defense investment. “We are once again stepping up to uphold and defend the rules-based order that has fostered global prosperity,” Trudeau stated during a press briefing.
The defense spending is projected to reach 1.76% of Canada’s gross domestic product by 2030, marking an increase from the current 1.4% but falling short of NATO’s 2% target for member states. However, officials refrained from setting a specific timeline to achieve the 2% benchmark. While the implementation of the program remains uncertain, with polls indicating the Liberal Party trailing the Conservative Party ahead of the next election mandated by late October 2025, the United States welcomed Canada’s commitment to enhancing defense capabilities. David Cohen, the U.S. ambassador to Canada, commended the policy update, describing it as a significant step towards fulfilling Canada’s NATO obligations. He emphasized the importance of Canada aligning with other NATO nations in defense spending. Canada, with an annual defense budget of approximately C$31 billion ($22.8 billion), intends to allocate an additional C$8.1 billion over the next five years and a total of C$73 billion over the next two decades.
With a vast territory and a population of 40 million, Canada faces the challenge of safeguarding its Arctic region, spanning 4.4 million square kilometers of land and water, amidst growing Russian and Chinese presence in the area. To address these challenges, Canada plans to invest in northern operational support hubs, coastal and underwater sensors, and new tactical helicopters to replace aging fleets. However, Conservative defense spokesman James Bezan criticized the announcement, arguing that it falls short of addressing issues such as military recruitment and equipment maintenance. He accused Trudeau of deferring most defense spending commitments until after the upcoming election, describing it as a delay tactic.