The contract, worth almost $2 billion CAN (US$1.4 billion), was awarded to General Dynamics Land Systems-Canada, based in London, Ontario. Canada will also pay for GDLS-Canada to build another 35 armored combat support vehicles for Ukraine, said Canadian Prime Minister Mark Carney, who announced the deal on July 16.

Canada had previously donated 89 such vehicles to Ukraine.

The new purchase will see the Canadian Army’s wheeled light armored combat support vehicle fleet increase from 360 vehicles to 550 vehicles.

GDLS-Canada was originally awarded the contract for the first 360 armored combat support vehicles in August 2019. Those vehicles have already been delivered.

ACSVs have eight variants – ambulance, command post, troop/cargo, electronic warfare, maintenance and recovery, mobile repair team, fitter/cargo, and engineer. They are all based on the GDLS-Canada’s Light Armored Vehicle 6.0 platform, which helps the army reduce training and sustainment costs. ACSVs are currently deployed with the Canadian-led NATO Multinational Brigade in Latvia.

Carney also announced that GDLS-Canada has been designated as the first strategic partner under his government’s newly established Defence Industrial Strategy’s framework. That framework puts emphasis on buying defense equipment from Canadian-based firms.

“Through this framework, we’re creating a pathway for Canadian companies like GDLS-Canada to work more closely with our government to build those sovereign capabilities: the armored vehicles, the drones, the icebreakers, the equipment that our armed forces need,” Carney said in a televised news conference from the GDLS-C plant.

The framework requires companies to commit to investing in Canadian research and development, hiring domestic workers and expanding their domestic supply chains. “In return, the federal government will act as an anchor customer — accelerating approvals and opening doors to new export markets,” Carney said. “The commitment is simple: when Canadian companies build for Canada, Canada will build with them.”

Carney said the construction of armored vehicles at GDLS-Canada involves more than 600 Canadian suppliers.

Carney launched the defense industrial strategy framework in the aftermath of U.S. President Donald Trump’s decision in 2025 to hit Canada with significant tariffs as well as other threats of economic punishment. Trump has warned that the only way Canada could escape such economic measures would be to become a 51^st state.

As a result, Carney noted that Canada needed to reduce its alliance on the U.S., particularly in regard to U.S.-built military equipment. “We should no longer send three-quarters of our defense capital spending to America,” Carney said June 9, 2025.

He left the door open to working with U.S.-owned firms, such as GDLS-Canada, as long as they made an economic commitment to Canada.

GDLS-Canada vice president and general manager Dave Haggerty welcomed the strategic agreement between the firm and the Canadian government. “Our team takes great pride in the opportunity to provide Canadian soldiers with the advanced combat vehicle platforms and support they need to succeed, while continuing to strengthen Canada’s sovereign capabilities, its defense industrial base, and skilled workforce,” Haggerty said in a statement.

Canadian Prime Minister Mark Carney announced July 6 that TKMS has been selected as the winning bidder in the country’s project to acquire the new boats. The company offered Canada its Type 212CD submarine which is being built for both Germany and Norway.

Carney did not provide a dollar figure on the submarine project but noted the deal is expected to be the largest defense procurement in the country’s history. It is estimated that the entire project could cost as much as $70 billion ($100 billion Canadian) when long-term maintenance, new infrastructure, weapons and other factors are considered over the life of the boats.

Negotiations with TKMS will begin shortly with a contract expected to be in place by the end of the year.

TKMS beat out a bid from Hanwha Ocean, which was offering its KSS-III submarine.

“This was a difficult, close decision between two highly qualified suppliers,” Carney said in making the announcement in Halifax, Nova Scotia. “Both the TKMS and the Hanwha platforms met the very high capabilities of the Royal Canadian Navy, and both of them put forward strong proposals to maximize benefits for Canadian workers and businesses.”

“These subs will strengthen our defense industrial base, they will deepen our partnerships with trusted allies, and they will open new opportunities for Canadian businesses in European supply chains,” he added.

The new submarines will replace the Royal Canadian Navy’s aging Victoria-class submarines. Government officials said the first submarine is expected in 2033 with three more hopefully being delivered in 2034.

“In the end, this decision was about choosing the absolute best platform and partnership to meet Canada’s combined strategic, security and economic interests,” Carney said.

Carney made the announcement the day before the NATO Summit is set to begin in Turkey. “These subs will strengthen our defense industrial base, they will deepen our partnerships with trusted allies, and they will open new opportunities for Canadian businesses in European supply chains,” Carney said.

Oliver Burkhard, CEO of TKMS, said in a statement that the company is ready to provide Canada with significant economic benefits. “We stand ready to work alongside the government of Canada, Canadian industry and our partners in Germany and Norway to deliver a world-class submarine capability that will strengthen security, create economic opportunity and generate lasting benefits for future generations,” Burkhard said.

Glenn Copeland, CEO of Hanwha Canada, said the company was disappointed with its loss but he noted that the competition showed Canada what South Korea can offer. “The team at Hanwha have demonstrated to the Canadian public and government that there is unlimited potential to unlock within the South Korean defense industrial base and that Hanwha and its business divisions will continue to grow aside from today’s decision,” Copeland said in a statement. “We look forward to continuing to demonstrate why Hanwha is the backbone of the world’s fourth-largest defense export nation.”

Hanwha mounted a significant economic and public relations push to convince Canada about the value of its boats. That included the Republic of Korea Navy sending one of its KSS-III submarines to Victoria, British Columbia, in May to show the long-range capabilities of the boat as well as to conduct joint operations with the Royal Canadian Navy.

The South Koreans were also promoting the procurement as a way for Canada to expand its relations in the Asia-Pacific region. Carney said that the loss for Hanwha does not signal a change in Canada’s commitment to the area. “We’re very committed to the Indo-Pacific strategy,” he said. “There are a series of other initiatives Canada and Korea are pursuing that build our economic resilience and security footprint.”

Stephen Fuhr, secretary of state for defense procurement, said at a news conference in Victoria on July 6 that the submarine competition was completed in record time. The whole process took less than a year.

Fuhr said one of the main criticisms of Canada’s defense procurement process is that it is too lengthy. But he noted he intends to change that and speed up other future defense procurements.

The current fleet of Victoria-class submarines operated by the Royal Canadian Navy will be decommissioned in the mid-2030s, the Canadian government has noted.

Prime Minister Mark Carney announced the news May 27 at the CANSEC defense trade show in Ottawa. It was the first time that a Canadian prime minister had appeared at the show, the country’s largest defense and security industry event.

Carney said the proposed GlobalEye purchase, estimated to cost more than $5 billion CAN (US$3.6 billion), will not only expand the country’s military capabilities but support his government’s initiatives to use defense purchases to support domestic firms.

“With a suite of advanced sensors and mission systems, Saab’s GlobalEye will be a key resource for the Canadian Armed Forces to detect and deter threats across the Arctic,” Carney said in a speech to CANSEC delegates. “It builds Canadian strategic autonomy, creates Canadian jobs and reinforces Canada’s position as a global leader.”

GlobalEye is based on a Bombardier 6500 executive jet, an aircraft that is manufactured in Toronto. Carney said that at least one-third of the projected GlobalEye aircraft orders for various allies will be built in Canada. That is expected to be 40 aircraft over the next 15 years.

Carney’s announcement that Saab is the preferred supplier for Canada’s Airborne Early Warning and Control project signaled the start of negotiations with the company. No details were provided on when a contract could be signed.

With it airborne surveillance capability, GlobalEye can track objects up to 650 kilometers away and collect real-time intelligence for the Canadian Armed Forces, according to the Canadian government.

Government officials also noted the new capability would strengthen Canada’s contributions to the joint U.S. -Canadian North American Aerospace Defense Command (NORAD) and improve operational reach in remote regions, particularly the Arctic.

Canada embarked on a major defense-spending initiative in 2025, with a commitment to spend $180 billion CAN on defense procurement in the next ten years and another $290 billion CAN on defense and security-related infrastructure. The purchase of new self-propelled howitzers, submarines, armored vehicles and fighter jets are part of that procurement initiative.

Carney’s push to spend more on defense has also transformed CANSEC. Usually the show attracts around 14,000 but organizers say this year some 20,000 visitors are expected over a two-day period. Attendance at CANSEC is limited to industry and military personnel.

Canada’s boost in defense spending was, in part, fueled by pressure from U.S. president Donald Trump’s administration. Trump has continually complained that Canada does not do enough in defense. In addition, he has hit Canada with significant tariffs as well as other threats of economic punishment. Trump has warned that the only way Canada could escape such economic measures would be to become a U.S. state.

Carney responded by embarking on a program to focus defense spending on domestic companies as well as seeking new alliances with European and other nations. He also noted that Canada needed to reduce its reliance on the United States, particularly in regard to U.S.-built military equipment. “We should no longer send three-quarters of our defense capital spending to America,” Carney said June 9, 2025.

In response to ongoing U.S. economic threats, Carney also ordered a review of Canada’s purchase of the Lockheed Martin F-35 fighter jet. The Canadian government announced in January 2023 it planned to spend $13.2 billion for the purchase of 88 F-35s from the U.S. government. But at this point it has only paid for and committed to buy 16 of the aircraft.

Saab has offered its Gripen fighter jet to Canada, with the promise that the aircraft could be produced in the country. The Canadian review of the F-35 purchase, and the Saab Gripen proposal, is still ongoing.

During a televised news conference at CANSEC, Carney was asked whether the GlobalEye purchase was part of larger package that would include the acquisition of Saab Gripen fighter jets. He declined to comment.

Both Saab and Bombardier greeted Carney’s announcement as a sign that domestic firms would play a greater role in defense procurement.

“We welcome Canada’s decision to enter into discussions with Saab as the preferred supplier of the future Canadian AEW&C capability,” Micael Johansson, President and CEO of Saab noted in a statement. “GlobalEye offers proven capability for the Royal Canadian Air Force, sovereign ownership for Canada and comprehensive and skilled work for Canadian industry.”

Carney announced in Berlin on Aug. 26 that Canada had shortlisted thyssenKrupp Marine Systems and Hanwha Ocean as the two firms that are being considered for Canada’s program to acquire up to 12 conventionally-powered submarines.

Carney then travelled the same day to Kiel in northern Germany to tour the thyssenKrupp facilities. He said he would also travel to Hanwha Ocean’s facilities in late October. Carney is expected to be in South Korea at that time for the APEC South Korea 2025 Summit which runs Oct. 31 to Nov. 1.

Carney announced the shortlisting of the two firms during a news conference in Berlin with German Chancellor Friedrich Merz. Carney said the new Canadian submarines will be expected to operate in the Arctic under ice for weeks at a time as well as in demanding conditions on Canada’s other coasts.

“So that’s how the field narrows quite quickly,” he told reporters. “So it’s a testament to both of these companies, both of these consortiums, that they qualify.”

In a separate news release issued Aug. 26, Public Services and Procurement Canada noted that “Canada will conduct in-depth engagements with the two qualified suppliers to continue to advance the procurement process. Canada intends to leverage work on the submarines to generate economic benefits for Canada’s marine and defence industry throughout the fleet’s operational life.”

The Canadian government formally began its efforts to acquire a fleet of new submarines when it requested information from various firms in September 2024. The request to industry asked for information on the production cost for acquiring eight or 12 submarines, among other details. No information on the project budget has been released yet but defense and industry analysts have noted the cost would be at least $60 billion Canadian dollars, $44 billion U.S.

The current fleet of Victoria-class submarines operated by the Royal Canadian Navy will be decommissioned in the mid-2030s, the Canadian government has noted. To avoid any gap in Canadian submarine capabilities, Canada anticipates a contract award by 2028 with the delivery of the first replacement submarine no later than 2035, according to Canadian government officials.

ThyssenKrupp Marine Systems is looking to offer Canada the Type 212CD submarine which is being developed jointly with Norway.

Hanwha Ocean is proposing its KSS-III, which is already in service with South Korea’s navy.

Both companies have promised to work closely with Canadian firms.

TKMS CEO Oliver Burkhard noted that the company’s submarines are well suited for Arctic and under-ice operations, the Canadian Press news service reported Aug. 26.

In an Aug. 27 statement, Hanwha noted it can deliver four KSS-III submarines before 2035 if a contract is awarded next year. The additional eight submarines would be delivered at a rate of one per year, meaning the entire fleet of 12 submarines could be delivered to Canada by 2043, the company added.

Royal Canadian Navy Commodore Jason Armstrong, Director General of Naval Force Development, told industry officials April 10, 2025 that the first of the new class of submarines will be delivered in 2035 with initial operating capability by 2037.

The submarines are to be capable of deploying undetected to a range of 3,500 nautical miles and patrol covertly for 21 days, according to the Armstrong’s briefing document which was provided to Defense News by Canada’s Department of National Defence.

The new submarines will be armed with heavy torpedoes, anti-ship cruise missiles and precision-strike capabilities, the briefing noted.

The four Victoria-class boats, originally known as the Upholder-class, were purchased second-hand from the Royal Navy. The first three Victoria-class submarines were accepted into Royal Canadian Navy service between 2000 and 2003. The fourth submarine suffered a fire in transit to Canada in 2004, which delayed its acceptance into RCN service until 2015.

The submarines are currently undergoing various improvements and upgrades to keep them operating until the mid to late 2030s.

Prime Minister Mark Carney announced Monday that his government will provide $6.6 billion ($9 billion Canadian dollars) in new funding for the Department of National Defence over the next ten months. That money will allow Canada to reach by April 2026 the NATO goal of spending two percent of GDP.

By then Canada will be spending $45.7 billion (CA $62.7 billion) on defense and security. That figure includes spending by both the defense department and other federal departments on defense.

Of the new money, $3 billion (CA 4.1 billion) will go to strengthen the country’s domestic defense industry through various new initiatives as well as redirecting Canadian procurement away from U.S. equipment.

“We should no longer send three-quarters of our defence capital spending to America,” Carney said in a televised speech.

Some of the funding is expected to be directed toward the Rearm Europe initiative which Carney has expressed an interest in joining. He has talked about making new alliances with European nations in the wake of tariffs and other threats of economic punishment by U.S. President Donald Trump. Trump has warned that the only way Canada could escape economic measures would be to become a 51st state.

Carney has rejected that.

Canadian government officials, speaking on background, said that Canada will continue to have close relations with its American neighbor as well as leverage partnerships with the U.S. when it is in Canada’s best interest to do so.

But Carney also warned that the U.S.-Canada relationship has changed and that Canada needs to reduce its reliance on Washington.

“The United States is beginning to monetize its hegemony: charging for access to its markets and reducing its relative contributions to our collective security,” he said in his televised address.

Details on new initiatives with Canadian industry are expected to be unveiled in the coming year. Carney told the Canadian Broadcasting Corporation on May 27 that he hopes to be able to sign on to the Rearm Europe initiative by July 1.

Canadian defense officials, speaking on background at a technical briefing for journalists on Monday, noted that the extra spending Carney announced will set the stage for future defense procurements. Carney has promised his government will purchase self-propelled howitzers, a fleet of conventionally-powered submarines, and a fleet of Canadian-made early warning and control aircraft.

A new ground-based air defense system will also be purchased for the Canadian Army. Carney has also promised purchasing additional heavy icebreakers, although he has not provided details on numbers of such ships.

The new funding announced Monday will also finance pay increases for Canadian Forces personnel as well as improved cyber defense initiatives. In addition, it will be used to expand and enhance existing and emerging military capabilities, according to government officials. No specifics were provided but this money will help efforts to allow Canada to become increasingly self-sufficient in defending its territory, especially in the Arctic.

This initiative will include “a focus on Canadian suppliers,” according to the Department of National Defence.

In addition, Carney had already ordered a review of Canada’s purchase of the Lockheed Martin F-35 fighter jet. The Canadian government committed in January 2023 to spending $13.2 billion (CA $19 billion) for the purchase of 88 F-35s from the U.S. government.

Carney, who linked the review to Trump’s ongoing trade war against Canada, said at this point the country has only committed to purchasing the first 16 F-35s. He noted that he has had discussions with French and British government officials about whether they could provide an alternative to the F-35 and whether that aircraft could be built in Canada.

Department of National Defence spokeswoman Andrée-Anne Poulin stated in an email that the F-35 review is still ongoing. “It is anticipated that this review will be finalized in summer 2025,” she said in a June 2 email. No further timelines were provided.

Prime Minister Mark Carney named his new Cabinet on May 13 which included David McGuinty as defense minister and former Royal Canadian Air Force fighter pilot Stephen Fuhr as Secretary of State for defense procurement.

“Everyone is expected and empowered to show leadership – to bring new ideas, a clear focus, and decisive action to their work,” Carney said in a televised speech at the Cabinet announcement.

“We will build a stronger Canadian Armed Forces to defend every inch of our territory through unprecedented investments in land, air, sea, and cyber space,” he added.

Carney said his government’s priorities will be announced on May 27.

But his defense platform, released April 19 in the middle of the federal election, has already outlined a significant rearmament program for the Canadian military. That includes the purchase of 80 to102 self-propelled howitzers, a fleet of conventionally-powered submarines, and a fleet of Canadian-made early-warning and control aircraft. A new ground-based air defense system will also be purchased for the Canadian Army. Carney has also promised purchasing additional heavy icebreakers, although he has not provided details on numbers of such ships.

In addition, Carney had already ordered a review of Canada’s purchase of the Lockheed Martin F-35 fighter jet. The Canadian government committed in January 2023 to spending $13.2 billion (19 billion Canadian dollars) for the purchase of 88 F-35s from the United States.

Carney, who linked the review to U.S. President Donald Trump’s ongoing trade war against Canada, said at this point the country has only committed to purchasing the first 16 F-35s. He noted that he has had discussions with French and British government officials about whether they could provide an alternative to the F-35 and whether that aircraft could be built in Canada.

Carney has also pointed out that Canada has choices on its defense alliance partners.

Trump’s threats against Canada have raised issues about the state of the U.S.-Canada military relationship. “What degree of interoperability do we have in our military in a world that is more dangerous and divided,” Carney asked May 13 when referring to U.S.-Canadian defense arrangements. “So we have big decisions to make there.”

Fuhr will take on the job of overseeing the F-35 review as well as making improvements to the defense procurement process.

Fuhr previously questioned the cost and value of the F-35 in 2011 and 2014 when he was a civilian involved in the aviation industry.

But he was later elected in 2015 as a Liberal member of parliament. Then-Liberal Prime Minister Justin Trudeau, who had promised never to purchase the F-35 during the 2015 election campaign, later changed his policy and his government approved the purchase of the fighter jet in 2023.

Fuhr said he has yet to be briefed on his role.

The F-35 review is still in its early stages. Canada’s Department of National Defence has continued to decline to provide a timeframe for when the process might be finished.

“The F-35 review is ongoing and progressing in a timely manner; it is taking into consideration internal, external, and independent input,” Department of National Defence spokesman Nick Drescher Brown stated in a May 15 email to Defense News.

In addition, the Canadian military hopes to start working with industry this summer on the acquisition of a new helicopter fleet that will deal with existing rotary aircraft gaps in firepower and mobility.

The proposed purchase wasn’t specified in Carney’s defense policy.

But a briefing to the aerospace industry and defense analysts noted that Canada will spend $12.9 billion (CA $18.4 billion) on new tactical helicopters. The briefing was prepared by RCAF Brig. Gen. Brendan Cook, director general of air and space force development, and provided to Defense News by the Department of National Defence.

The new fleet would replace the existing CH-146 Griffon helicopter fleet.

The Liberal Party, headed by Mark Carney, won the federal election on April 28 setting the stage for new policies aimed at dealing with Canada’s deteriorating relationship with the United States.

On the campaign trail, Carney promised to focus more on Canadian-built defense products and shift spending away from the purchases of U.S.-built equipment. In addition, Carney has emphasized Canada’s interest in joining rearmament initiatives underway in Europe.

“Our old relationship with the United States, a relationship based on steadily increasing integration, is over,” Carney said in a televised victory speech in Ottawa on April 29. “The system of open global trade anchored by the United States, a system that Canada has relied on since the Second World War, a system that, while not perfect, has helped deliver prosperity for our country for decades, is over.”

Carney was able to defeat Conservative Party leader Pierre Poilievre by positioning himself as the best candidate to stand up to U.S. President Donald Trump.

Trump has brought in tariffs against Canada and has threatened to ruin the country’s economy. The president has warned that the only way the country could escape such punishment would be to become the 51st American state.

Trump’s actions have caused widespread distrust of the U.S. in Canada and prompted the Liberals to outline a defense policy based on forging new military alliances.

The Liberal Party’s defense platform, released during the election campaign on April 14, included the creation of a new defense procurement agency. Carney has also promised to modernize defense-procurement rules so purchases of military equipment can be hastened. The Liberal Party platform also promised to buy “Canadian whenever possible and prioritizing Canadian raw materials such as steel, aluminum, and critical minerals.”

During an April 15 speech Carney noted that Canada must look to new sources for the purchase of defense equipment. He pointed out that over the years Canada has been overly reliant on the U.S. for defense products, noting that 80% of Canada’s military equipment purchases are from American firms.

Carney is a newcomer to politics. He won the Liberal Party leadership on March 9 and five days later was sworn in as Canada’s 24th prime minister. He called an election shortly after and received a new mandate to govern.

Carney has also ordered a review of Canada’s purchase of the Lockheed Martin F-35 fighter jet.

The Canadian government committed in January 2023 to spending $13.2 billion (19 billion Canadian dollars) for the purchase of 88 F-35s from the U.S. Government.

Carney, who linked the review to Trump’s ongoing trade war against Canada, said at this point the country has only committed to purchasing the first 16 F-35s. He noted that he has had discussions with French and British government officials about whether they could provide an alternative to the F-35 and whether that aircraft could be built in Canada.

In addition, he pointed out that defense relations were a key part of his earlier talks with French President Emmanuel Macron and British Prime Minister Keir Starmer.

The Next Tactical Aviation Capability Set or nTACS project will provide a joint capability to be fielded by the Royal Canadian Air Force, the Canadian Army, and Canadian special forces.

In addition, Canada is also planning an upgrade of its existing fleet of Chinook heavy lift helicopters, according to a Feb. 25, 2025, briefing on Canada’s vertical lift capabilities.

The document noted that Canada will spend $12.9 billion (CA $18.4 billion) on new tactical helicopters. The briefing was prepared by RCAF Brig. Gen. Brendan Cook, director general of air and space force development, and provided to Defense News by the Department of National Defence.

The briefing pointed out that the nTACS project is in the options analysis phase but that discussions with industry are expected to begin sometime this summer.

Department of National Defence spokesman Kened Sadiku told Defense News that the exact timing for soliciting industry bids was still up in the air.

But the briefing noted that initial operating capability for nTACS would be expected in 2033.

The new fleet would replace the existing CH-146 Griffon helicopter fleet. But it would provide even more by revitalizing Canadian tactical aviation capabilities to “address capability gaps in Firepower, C4ISR, Mobility, and Support to Special Operations Forces,” according to Cook’s briefing package, compiled for use in industry presentations.

The project would provide a “return to a balanced fleet concept,” the briefing added.

Sadiku did not provide further details on the breakdown of the estimated cost or where the nTACS helicopters will be based in Canada. Such details will be covered in the options analysis which is expected to be completed in the next several months.

“This will consider the possible market options for nTACS, their platform capabilities, and this will then inform basing decisions,” Sadiku noted.

The Canadian Armed Forces currently operates 82 CH-146 Griffon helicopters. That helicopter is a variant of the Bell 412EP.

Canada also operates 14 CH-147F Chinook medium to heavy lift helicopters. Cook’s briefing deck noted that a mid-life block upgrade project is planned for that helicopter. Initial operating capability would be in 2032 with full operating capability in 2033.

No cost estimates or further details were provided for that upgrade.

Meanwhile, the Royal Canadian Air Force is in the midst of receiving modernized CH-146s to extend the fleet’s service life.

In May 2022 the Canadian government awarded Bell Textron Canada Limited of Mirabel, Quebec, a contract worth $560 million (CAN $800 million) for the work.

The project is replacing a number of the aircraft’s avionics systems, including communications radios and cryptographic equipment, cockpit voice and flight recorders, navigation systems, automatic flight control systems, and control display units, according to the Canadian military.

Engines will also be upgraded and sensor systems will be integrated. The upgrade will allow the fleet to continue flying until at least 2031.

Full operational capability for the modernized helicopter fleet is set for 2027.

Bell Textron Canada Limited announced last June that it had completed first successful flight of one of the modernized CH-146 Griffon helicopters. The first upgraded Griffon completed is expected to be delivered to the Canadian government in 2026 pending military certification, according to the government.

Foreign Affairs Minister Melanie Joly confirmed Wednesday to journalists that Canada has been in negotiations with European government officials about a joint defense alliance that would include joint procurement projects.

She noted the negotiations are at an advanced stage and were prompted, in part, by President Donald Trump’s threats to annex Canada.

Earlier this month, Trump levied a 25% tariff on a variety of Canadian goods. He has threatened to ruin Canada’s economy and has warned that the only way the country could escape such punishment would be to become the 51st American state.

Trump’s actions have caused widespread distrust of the U.S. in Canada and prompted the ruling Liberal government to forge new defense alliances, particularly with European countries.

“We need new partnerships,” Joly told the Canadian Press news service. “We have an over-reliance on American procurement, particularly in the defense sector.”

“The rhetoric coming out of the White House is not only concerning, but it is also a threat to our sovereignty,” she added.

Canada has not released details on the specific European nations it is in negotiations with or when those talks might be concluded.

But in a Monday news conference, Canadian Prime Minister Mark Carney revealed he has ordered a review of Canada’s purchase of the Lockheed Martin F-35 fighter jet.

The Canadian government committed in January 2023 to spending $13.2 billion (19 billion Canadian dollars) for the purchase of 88 F-35s from the U.S. government.

Carney, who linked the review to Trump’s ongoing trade war against Canada, said at this point the country has only committed to purchasing the first 16 F-35s. He noted that he has had discussions with French and British government officials about whether they could provide an alternative to the F-35 and whether that aircraft could be built in Canada. In addition, he pointed out that defense relations were a key part of his talks with French President Emmanuel Macron and British Prime Minister Keir Starmer during his visit Monday to those nations.

“Given the geopolitical environment, given the fact that there are options, given the need for value for money, given the possibility of having substantial production of alternative aircraft in Canada — as opposed to sending, as we have been, on average, 80 cents of every dollar to the United States — it’s prudent and in the interest of Canada to review those options,” Carney said at a news conference.

Canada’s Department of National Defence did not respond to questions about how long the F-35 review will take or what agency is conducting the exercise.

On Tuesday Carney announced Canada was strengthening its defense relationship with Australia by partnering with that country on a new over-the-horizon radar to monitor threats to the Arctic. The radar project is estimated to be worth $4.2 billion (CA$6 billion) and would utilize Australia’s Jindalee Operational Radar Network, an over-the-horizon system developed in conjunction with BAE Australia.

Carney noted the partnership with Australia will allow the system to be built and put into operation quickly.

In a televised news conference Tuesday, Carney said the new radar would help strengthen Canada’s commitment to the joint U.S.-Canada North American Aerospace Defense Command. But he also noted the radar will allow Canada to act on its own to better protect its territory.

“International institutions and norms that have kept Canada secure are now being called into question,” Carney said. “The United States priorities, once closely aligned with our own, are beginning to shift.”

Meanwhile, some Canadian defense industry executives have voiced caution about further angering the Americans, particularly with the possibility of dumping the F-35 deal.

“Canceling the F-35s might be a good idea, but we need to think about it,” Bombardier CEO Eric Martel said in a speech in Montreal on Monday. “We [Bombardier] have contracts with the Pentagon. Will there be reciprocity there?”

Rebecca Miller, director of global media relations for Lockheed Martin stated in an email that the company values its partnership and history with the Royal Canadian Air Force. She noted Lockheed Martin looks forward to continuing that relationship into the future.

Before becoming prime minister earlier this month, Carney voiced support for boosting Canada’s defense budget. But he also questioned the wisdom of Canada spending up to 80% of its military equipment budget on U.S. systems, particularly when the American government is threatening economic harm against Canada.

“We need to spend more of that money here in Canada,” he said in February.

Carney is expected to call a federal election on Sunday, multiple Canadian media outlets reported Thursday. The Trump administration’s threats against Canada are expected to play a major role in the political contest to form the next Canadian government.

The Canadian government has requested submarine builders submit information on their boats by Nov. 18 in what is seen as a first step in the eventual purchase.

Canadian Defence Minister Bill Blair issued a statement Sept. 16 noting that submarines are crucial to maintaining the country’s sovereignty. “As an Arctic, Atlantic, and Pacific nation with the world’s longest coastline, Canada needs a new fleet of submarines,” Blair said.

The current fleet of Victoria-class submarines operated by the Royal Canadian Navy will be decommissioned in the mid-2030s, he added.

“To avoid any gap in Canadian submarine capabilities, Canada anticipates a contract award by 2028 with the delivery of the first replacement submarine no later than 2035,” Blair noted in his message.

In a statement also released Sept. 16 on X, Blair said the purchase would involve acquiring up to 12 conventionally-powered, under-ice capable submarines. No cost figures were released at this time.

Canada is open to submarines that are currently in service or in production.

The submarines would be capable of conducting “precision attacks” and would equipped with heavyweight torpedoes, anti-ship missiles and long-range precision land attack missiles, according to the initial information provided to industry.

Blair said the request for information will also open the door for Canadian industry on in-service support, training and infrastructure for the new fleet. Canada does not build its own submarines so any boats will be constructed in another nation.

Blair originally highlighted Canada’s interest in new submarines on July 10 at the NATO summit in Washington but did not provide specific details at that time. Canadian government officials, however, have suggested that the submarine purchase could help Canada meet its goal of spending at least 2% of GDP on defense as required by NATO. Canada has been under increasing pressure from its allies to do more on defense.

To prepare for the acquisition the Royal Canadian Navy had already created the Canadian Patrol Submarine Project (CPSP), which was gathering information, and conducting an analysis of potential submarines capable of meeting the service’s requirements.

In 2023 the CPSP project team conducted initial engagements and fact finding with countries, companies, and navies that currently have or are in the process of building submarines that meet Canada’s needs. The team has engaged with France, Germany, Japan, South Korea, Spain, and Sweden.

The request for information will allow Canada to receive specific information it needs to put together a bid package and supporting documents for the future purchase.

The four Victoria-class boats, originally known as the Upholder-class, were purchased second-hand from the U.K. Royal Navy. The first three Victoria-class submarines were accepted into Royal Canadian Navy service between 2000 and 2003. The fourth submarine suffered a fire in transit to Canada in 2004, which delayed its acceptance into RCN service until 2015.

The submarines are currently undergoing various improvements and upgrades to keep them operating until the mid to late 2030s.