Canada Plans $60B Defense Drive, 125,000 Jobs

6 sourcesUpdated Aug 28, 2026

Canada is accelerating its push to run a more self-sufficient defense sector, with a plan to spend about $60 billion over the next five years to bolster domestic suppliers and supply chains. In Toronto, a garment factory producing helmet covers for the Canadian military exemplifies a broader shift as local firms like Wuxly expand into defense gear and other high-tech military products such as drones, sensors, and autonomous robotics. The strategy seeks to diversify away from American suppliers amid strained Washington-Ottawa relations and tariff tensions, while also responding to pressure from the U.S. to contribute more to NATO. Analysts describe the investment as unprecedented for peacetime Canada and stress the importance of nurturing homegrown companies to access defense and security markets. However, Canada faces challenges competing with entrenched U.S. defense giants and securing sustained political support for long-term funding. The move reflects a broader national effort to strengthen economic independence in the defense sector while creating jobs and advanced capabilities at home.

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Canada-U.S. tariff standoff and economic falloutstory 14 of 16 · since Aug 18, 2026

Aug 18, 2026Aug 28, 2026

Aug 28, 2026Canada unveils a $60 billion, five-year defense-industry plan to boost self-sufficiency and diversify away from American suppliers amid strained Canada-U.S. relations.
Aug 27, 2026Canada removes fish and seafood from its retaliatory tariff list after industry feedback, while maintaining tariffs on about $20 billion of U.S. imports.
Aug 26, 2026Despite the tariff standoff, Houston's roughly $12 billion energy trade with Canada faces limited risk as most energy products remain insulated.