Carney announces $6.6B plan to strengthen Canada’s defence industry and boost domestic

Prime Minister Mark Carney has announced a $6.6 billion defence industrial strategy aimed at expanding military production within Canada and reducing reliance on foreign suppliers, particularly the United States. The federal government says the initiative is designed to strengthen national security while building long term economic capacity.

The plan outlines a 10 year framework to prioritize Canadian based manufacturers in defence procurement. According to the Prime Minister, companies that build and assemble equipment in Canada will receive preference in federal purchasing decisions. The strategy also includes targeted measures to help small and medium sized businesses enter the defence supply chain.

Ottawa projects the initiative could support up to 125,000 jobs across the country over the next decade. Federal officials say the spending will be structured to ensure that defence investments generate direct benefits for Canadian workers and local industries rather than flowing primarily to overseas suppliers.

Carney said modernizing the Canadian Armed Forces and strengthening the domestic defence sector are closely linked. He added that every dollar spent on defence will be treated as an investment intended to reinforce both national security and economic resilience.

The announcement comes amid broader discussions about defence spending commitments among NATO allies and calls for Canada to enhance its military readiness while supporting domestic industry.