Defense Policy

Canada’s Shift from U.S. Defense Ties Reveals Risks to North American Security

By Economics Desk | December 2, 2025

Canada’s move to join the EU’s massive defense fund signals a worrying pivot away from the U.S., raising questions about the future of North American defense unity and sovereignty.

In a surprising turn that should set off alarms in Washington, Canada has joined the European Union’s €150 billion Security Action for Europe (SAFE) defense fund, marking the first time a non-EU nation gains access. This shift, announced under Prime Minister Mark Carney’s leadership, is more than a mere procurement strategy—it reflects a fundamental realignment with long-term implications for America’s northern neighbor and continental defense.

Is Canada Abandoning Its Historical Security Partnership with the U.S.?

For decades, Canada’s military procurement has leaned heavily on close cooperation with the United States—a partnership rooted not only in geography but shared values and strategic interests. Now, Carney openly seeks to reduce Canada’s reliance on American military suppliers, aiming for less than 30% of capital spending to go to U.S. firms. The catalyst? A mix of political friction stirred by President Trump’s trade policies and provocative rhetoric suggesting Canada become the “51st state.” While such comments strained relations, does it justify jeopardizing continental defense solidarity?

Canada’s newfound access to cheap EU-backed loans under SAFE certainly appears lucrative for Canadian defense firms eager to expand into European markets. But this raises critical questions: can fragmented alliances deliver the same level of interoperability and rapid response capability vital for North American security? Will aligning more with European defense frameworks—often plagued by internal divisions—dilute Canada’s ability to coordinate seamlessly with its closest ally?

The Broader Consequences for America First National Security

The stakes extend beyond bilateral ties. From an America First vantage point, this development risks weakening collective continental defenses at a time when global threats—from rising authoritarian powers to transnational terrorism—demand unwavering cooperation among security partners like Canada and the U.S.

Moreover, Carney’s reluctance to proceed decisively with purchasing proven U.S. fighter jets in favor of exploring alternatives like Sweden’s Saab Gripen undermines efficiency in military readiness while complicating supply chains and joint operations. The promise of domestic production rings hollow if it comes at the cost of delayed capabilities or fractured alliance trust.

As NATO members grapple with their own internal challenges—the UK recently walking away from SAFE talks over cost disputes—the risk grows that transatlantic defense collaborations will fracture further.

American policymakers must confront uncomfortable questions: How long will Washington tolerate such strategic drift by its closest neighbors? Is there a need for renewed diplomatic engagement or policy incentives to reinforce traditional alliances that safeguard national sovereignty and mutual prosperity?

Canada’s pivot cannot be viewed in isolation; it illustrates broader vulnerabilities exposed when short-term political grievances overshadow enduring principles of economic liberty and national security embedded in our shared history.

The path forward demands vigilance—and clear-eyed action—to maintain unified defenses against global threats while preserving America’s rightful place as leader within its hemisphere.