Trump Tried to Punish Canada on Defense — What Carney Did Next Caught Washington Off Guard The United States has paused its participation in an 86-year-old Canada–U.S. defense board, claiming Canada isn’t doing enough on defense. But the facts tell a different story. Canada has now reached NATO’s 2% defense spending target and committed billions more to military modernization.
At the same time, Canada is reducing its dependence on the U.S. by expanding trade and defense partnerships with Europe. It became the first non-European country to join the EU’s major defense procurement program, opening new opportunities for Canadian industry.
The bigger story is not about a frozen defense board. It’s about Canada building new economic and strategic options. While Washington applies pressure through tariffs and political messaging, Canada is diversifying its markets, increasing exports beyond the U.S., and strengthening international partnerships.
The lesson is simple: in today’s world, middle powers must work together. Because if you’re not at the table, you’re on the menu. Canada’s strategy is to remain a strong ally while ensuring it is never dependent on a single partner again.