Canada Announces Billions in Defense Spending to Meet NATO Target

Canadian Prime Minister Mark Carney announced a multi-billion-dollar military spending package aimed at meeting NATO’s 2 percent defense spending target this year and committing to a long-term goal of 5 percent of GDP by 2035. Since taking office in April 2025, Carney has highlighted concerns about Canadian military readiness amid growing global threats, including potential Russian aggression in the Arctic and uncertainties related to the United States' role in global security. The package includes CAN$2 billion ($1.5 billion) to increase soldiers' pay, notably a 20 percent raise for the lowest-ranking personnel, as part of a total CAN$9 billion investment in modernizing military hardware such as combat vehicles and drones. Carney emphasized that the post-World War II international order is under pressure and that Canada has taken its security for granted for too long. The announcement follows U.S. President Donald Trump’s demands that NATO members spend 5 percent of their GDP on defense, warning that the U.S. might withhold protection from countries not meeting such commitments. Carney affirmed Canada’s determination to meet both the immediate NATO target and the longer-term increased defense investment pledge.