Canada Commits to 2% NATO Defence Target Amid Rising Global Tensions

It’s official Canada will meet its NATO defence spending target of 2% of GDP this year. Prime Minister Mark Carney made the announcement today, revealing that the federal government will invest an additional $9.2 billion in defence spending in 2025, pushing Canada’s total military expenditure to approximately $60 billion annually.

This landmark move not only fulfills a key Liberal campaign promise, originally pledged by Carney to be met before 2030 but does so years ahead of schedule. The commitment is one of the largest investments in the Canadian Armed Forces in decades and comes at a time when the global security landscape is becoming increasingly volatile.

The increased funding isn’t just a one-time infusion it’s the new baseline. To maintain 2% of GDP going forward, Canada’s defence budget will continue to rise alongside the economy.

So Where Is the Money Going?

The new spending will touch virtually every aspect of Canada’s military readiness:

• Better pay and healthcare for armed forces personnel

• Modern recruitment and retention programs

• Fleet repairs for aging ships, submarines, tanks, and aircraft

• New equipment, including aircraft, armoured vehicles, drones, and long-range precision strike systems

• Increased domestic ammunition production

• Modern surveillance technologies for Canada’s Arctic, including undersea sensors and Over-the-Horizon Radar

• Expanded role for the Canadian Coast Guard as part of NATO operations

• Boosting cybersecurity, AI, and space capabilities

• Modernizing infrastructure and logistics systems across the armed forces

In short, this is not just about warfighting it’s about rebuilding a full-spectrum military capable of defending Canada’s sovereignty, assisting our allies, and responding to a range of threats at home and abroad.

This decision comes amid an increasingly unstable world order. Russia has moved troops near NATO borders, and many defence analysts warn that Vladimir Putin may test NATO's resolve in Eastern Europe in the near future. Meanwhile, China continues to monitor and surveil Canada’s Arctic, where melting ice is opening up new, potentially contested shipping lanes. The Arctic is poised to become one of the most geopolitically valuable regions on Earth and Canada can no longer afford to be underprepared.

Add to that the ongoing instability in the Middle East and the uncertain future of U.S. leadership, with President Trump repeatedly pressuring allies like Canada to spend more on defence and threatening tariffs and trade retaliation when they don’t.

Mark Carney’s announcement may not silence Trump completely, but it sends a clear message: Canada is stepping up.

While international deterrence dominates the headlines, it’s also important to remember the crucial role the Canadian Armed Forces play right here at home. Whether it’s evacuating communities from wildfires, delivering supplies during floods, or supporting disaster response teams, Canada’s military is often the first line of defence for Canadians in crisis.

That’s especially relevant now, as over 33,000 people have already been evacuated due to wildfires across Manitoba, Saskatchewan, and Alberta. Our troops are on the ground not in battle, but in communities, helping Canadians when they need it most.

Whether that’s on the battlefield, in the fire zone, or anywhere in between our Armed Forces need the tools, support, and respect to do their job. And starting this year, they’re getting it.