Canadian Prime Minister Mark Carney on Saturday (April 11, 2026) has announced the abolition of the old system of spending in the Canadian defense sector. He said Canada would end the old system of sending 70 cents of every dollar to the US for defense spending. He also presented a plan to reinvigorate the country’s military industry and reduce dependence on Washington.

PM Carney spoke at the National Conference of the Liberal Party

Addressing the Liberal Party’s national conference in Montreal, Prime Minister Mark Carney said that Canada needs to strengthen its defense infrastructure and economy. He said, ‘Now the time is over when the Canadian military used to send 70 cents of every dollar to America.’ After this statement of PM Carney, the people present in the conference stood up and clapped.

BIG NEWS – Canada announces to stop sending 70% of its defense spending to the United States. As soon as the announcement was made, the crowd erupted in a standing ovation pic.twitter.com/T48F3gzad4

— News Algebra (@NewsAlgebraIND) April 12, 2026

This statement of PM Mark Carney is the result of his message in which he has said that Canada’s dependence on America’s defense suppliers is no longer sustainable. Therefore, the focus of his government is to create employment at the local level by giving priority to domestic production of defense materials and Canadian suppliers.

What is the reason behind this step of Carney??

PM Mark Carney has repeatedly presented the issue as a structural problem. According to the Canadian PMO, in his October 2025 pre-budget address, he said, ‘Of every dollar spent for the Canadian military, more than 70 cents goes to the United States.’ At the same time, in April 2026, he reiterated this and said, ‘Now it will not happen that more than 70 cents of Canada’s military expenditure goes to America.’

This is not the time for normal politics – Carney

The comments were part of a broader speech regarding the country’s defense sector, in which PM Mark Carney talked about a transformative moment for Canada. He appealed for political unity from the country as the country is facing challenges like rapidly changing global order, increasing geopolitical tensions and rapid progress in Artificial Intelligence (AI).

He said, ‘This is not the time for normal politics, but by uniting we will build a strong Canada, which no one can take away from us.’ He argued that these changes bring risks as well as opportunities, provided Canada takes decisive action.

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