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

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.