PM Carney Pledges to Meet NATO Defence Target by March, Signals End of U.S. Global Dominance
Toronto – June 9, 2025 — In a landmark speech at Toronto’s Fort York Armoury, Prime Minister Mark Carney declared that Canada will meet NATO’s long-standing defence spending target of two per cent of GDP by the end of the current fiscal year in March 2026. The announcement comes amid global geopolitical shifts and ahead of the upcoming NATO leaders’ summit in The Hague.
Calling this moment a “strategic turning point,” Carney said the world must now face the reality that the era of unquestioned American dominance on the global stage is over. “The United States is beginning to monetize its hegemony,” Carney said, pointing to growing global instability, fractured alliances, and rising imperialism. He urged Canadians to prepare for a redefined global order where mid-sized powers like Canada must assert themselves or risk being sidelined.
During his visit to the command post at Fort York Armoury, Carney was joined by Defence Minister David McGuinty and military personnel as he outlined a generational transformation of Canada’s military posture. The Prime Minister reaffirmed election pledges to strengthen the Canadian Armed Forces, including new investments in submarines, armoured vehicles, drones, and cyberdefence technologies, along with a long-awaited pay raise for service members.
As part of the federal strategy, the Canadian Coast Guard is expected to be fully integrated into the Department of National Defence — a move aimed at streamlining command and expanding capabilities from coastal waters to Arctic regions and cyberspace.
A key component of the announcement is a new national defence industrial strategy to boost domestic military production — addressing longstanding concerns over Canada’s limited defence manufacturing capacity. Carney also confirmed Canada’s intent to sign NATO’s defence industrial pledge, aimed at enhancing alliance-wide production capacity and readiness.
The spending target of 2% of GDP is expected to require up to $20 billion in new annual investments. This comes after years of criticism under former Prime Minister Justin Trudeau’s leadership, where Canada fell short of its 2014 NATO commitment. At last year’s NATO summit in Washington, Canada stood alone as the only member without a plan to meet the target — drawing bipartisan rebukes from U.S. lawmakers.
Carney emphasized that the renewed military investment is not merely about NATO compliance but about ensuring Canadian sovereignty and safety. “Our goal is to protect Canadians, not to satisfy NATO accountants,” he stated.
This sweeping military and policy overhaul positions Canada to become a stronger player in NATO’s evolving strategy, as member nations debate increasing the spending target to five per cent in response to rising global threats.