Carney Announces $800M Missile Deal as Canada Boosts NATO Defence Spending—July 9

Prime Minister Mark Carney announced an $800 million contract with Norwegian defence company Kongsberg to acquire Joint Strike Missiles for Canadian F-35 fighter jets at the NATO summit in Ankara on July 8. The deal is part of a broader shift in NATO defence spending, with Carney telling reporters that U.S. President Donald Trump has “won the argument” on forcing allies to increase military budgets. Canada aims to meet NATO’s target of investing 5% of GDP in defence by 2035.

Canada’s $800 million missile purchase signals defence commitment

Carney announced the Kongsberg contract on the final day of the NATO summit in Turkey. The Joint Strike Missiles will equip future Royal Canadian Air Force F-35 fighter jets. The purchase follows Canada’s recent advancement of a major submarine procurement project, part of what the government calls a “generational transformation” of Canadian defence posture.

Trump pressured NATO allies to spend more on defence

Trump has long argued that U.S. allies do not spend enough and that America carries more than its fair share of NATO’s defence burden. Carney told reporters that Trump is looking to shift that burden, something former U.S. President Barack Obama also sought. “That’s gaining momentum,” Carney said. “It’s not just he’s winning the argument, he’s won the argument.” NATO Secretary-General Mark Rutte told Trump the surge in military budgets across the alliance was “a huge win.”

Canada plans multi-billion dollar defence investments beyond missiles

Beyond the Kongsberg deal, Canada announced an agreement-in-principle with Telesat for military satellite communications in the Arctic, expected to result in multi-billion-dollar investment. Canada is also investing in a new submarine fleet, the world’s second-largest fleet of icebreakers, and new aircraft and cyber defences. The government is on track to meet NATO’s 5% GDP defence spending target by 2035.

Tensions persist despite show of unity on spending

While NATO allies rallied around increased defence budgets, Trump remained critical of the alliance. He threatened to end trade with Spain and expressed anger over NATO’s handling of Greenland and Iran policy. Trump said he would raise Greenland as an issue during the North Atlantic Council meeting. Despite these tensions, Carney said Trump was in a good mood when they spoke on Sunday and at the NATO dinner on Tuesday night.

Final Thoughts

Canada’s $800 million missile contract and broader defence investments reflect NATO’s shift toward higher military spending under U.S. pressure. For Canadian investors and defence contractors, this signals sustained government spending on military procurement and technology partnerships over the coming decade.

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