Canada Considers Reducing Reliance on U.S. for Military Purchases

Canada is considering further reducing its dependence on the United States for military procurement as tensions between the two countries continue to grow over trade.

Stephen Fuhr, Canada’s secretary of state for defence procurement, said the recent tariff dispute has strengthened Ottawa’s determination to expand military cooperation with Europe, Asia and other international partners.

Fuhr said Canadians would likely oppose major military contracts awarded exclusively to American companies, particularly following the latest deterioration in Canada-U.S. relations.

Canada has committed to significantly increasing defence spending, but the government wants to reduce the proportion of military funds that flow to the United States. For years, about 70 per cent of Canada’s defence procurement spending went south of the border.

Fuhr said Canada must avoid returning to a situation where it relies too heavily on a single defence partner.

Although he described the United States as an important defence ally, he said Canada must become more self-reliant in military production and strengthen strategic partnerships with countries in Europe, Asia and Oceania.

Military affairs experts, however, warned that Canada cannot completely distance itself from the United States because of the two countries' close cooperation on continental defence.

The procurement shift could affect several major military projects. Among them is a potential purchase of American-made Black Hawk helicopters for Canada's special forces.

Canada is also reviewing its planned acquisition of 88 F-35 fighter jets made by Lockheed Martin. Ottawa has already ordered 16 F-35s and begun paying for equipment for another 14 aircraft, but the government has not indicated how many jets it will ultimately purchase.

At the same time, Canada remains interested in acquiring another fleet of Swedish-made Gripen fighter jets from Saab. Ottawa is also negotiating with Saab over the possible purchase of GlobalEye surveillance aircraft, developed with Canadian company Bombardier.

Fuhr also welcomed Canada's recent $2.3-billion contract with Telesat for Arctic military satellite communications. The project is expected to reduce Canada's reliance on Starlink, operated by U.S.-based SpaceX.

He said Canada would continue working with Canadian subsidiaries of foreign defence companies because they employ Canadians, pay taxes in the country and conduct engineering and other activities locally.

Fuhr also said Canada is examining ways to reduce its dependence on U.S. restrictions governing the transfer and use of military technology under the International Traffic in Arms Regulations (ITAR).

He argued that greater cooperation among Canada, Europe, Asia and Oceania could help create a more diversified and resilient defence supply chain.