Canada Separates Itself From US
Canada is taking a dramatic step away from its traditional defense partnership with the United States. Prime Minister Mark Carney announced that Canada will officially join a massive European Union defense loan program—signaling a major shift in military strategy and global alliances.
According to Carney’s office, Canada has secured entry into the EU’s Security Action for Europe (SAFE) fund, a 150-billion-euro ($170 billion) defense financing program designed to strengthen European security and expand weapons production. Canada becomes the first non-EU country ever granted access.
EU Access Gives Canada Cheaper Loans and New Military Markets
Through SAFE, Canadian defense companies will be able to obtain low-interest, EU-backed loans to build equipment, increase production, and deepen ties with European allies. Carney says the partnership will “fill critical capability gaps” while opening the door for more European investment in Canada’s defense industry.
For many observers, this marks the clearest sign yet that Canada is moving away from its long-standing military dependence on the United States.
Carney Blames Trump’s Tough Trade Policies for Canada’s Shift
Carney has repeatedly argued that Canada must “diversify” its procurement strategy. For years, more than 70 cents of every Canadian defense dollar went directly to U.S. companies—a level Carney says is no longer sustainable.
He points to President Donald Trump’s strong, America-first trade policies—including tough negotiations, higher expectations for NATO members, and blunt talk about North American economic fairness—as the political spark that pushed Canada toward Europe.
Carney used these disputes to make the case that Canada needed a new direction—helping him win the job of prime minister on promises to “stand up” to Washington.
F-35 Deal Under Review as Canada Looks to Europe Instead
One of the biggest questions now is whether Canada will follow through on its purchase of U.S. F-35 fighter jets. Carney’s government is still weighing alternatives. Sweden’s Saab has offered its Gripen jet with an attractive incentive: building and maintaining the aircraft inside Canada, creating domestic jobs and reducing reliance on U.S. production lines.
This remains a major political issue as Canada reshapes its defense identity.
Canada Claims It Will Finally Meet NATO Spending Levels
Despite moving closer to Europe, Canada insists it will meet NATO’s required defense spending benchmark by early next year. Many allies have criticized Canada for lagging behind for decades—making this a crucial test of Carney’s credibility.
U.K. Rejected by EU After Talks Collapse Over Costs
While Canada secured entry into SAFE, the United Kingdom tried and failed to negotiate a similar deal. Talks collapsed last week when EU officials demanded far more money than the U.K. was willing to pay.
Canada’s acceptance—while Britain was denied—adds even more political drama to Europe’s defense landscape.
