Canada Boosts Military Spending Amid U.S. Tensions
WHO:
The Globe and Mail - Prime Minister Mark Carney announced the selection of Germany’s TKMS for building submarines for Canada’s navy.
The Globe and Mail - The South Korean bidder, Hanwha, was backed by its government.
WHAT:
DW.com - Canada awarded a multi-billion-euro contract for up to a dozen submarines to ThyssenKrupp Marine Systems (TKMS), which is expected to be worth around €20 billion ($22.8 billion).
DW.com - The submarines are set to be manufactured at TKMS shipyards in Kiel and Wismar, Germany, where the shipbuilder plans to create up to 1,500 jobs.
DW.com - Canadian Defense Minister David McGuinty stated that the first submarines are aimed to be put into service by 2035.
The Globe and Mail - Canada has chosen Germany’s TKMS to build 12 submarines for its navy, marking the biggest military procurement in Canadian history.
The Globe and Mail - The decision was made in an unusually short timeframe of two years.
WHERE:
The Globe and Mail - The announcement took place at HMC Dockyard in Halifax, Canada.
The Globe and Mail - Canada is slated to host the proposed Defence, Security and Resilience Bank for NATO allies.
WHEN:
The Globe and Mail - Prime Minister Mark Carney is scheduled to attend a NATO leaders’ summit in Ankara, Turkey.
WHY:
DW.com - German Defense Minister Boris Pistorius described the deal as a milestone for transatlantic security and a key pillar in NATO's strategy in the North Atlantic and Arctic.
The Globe and Mail - The choice of a European supplier reflects Canada’s geopolitical leanings towards Europe and the need for strategic partnerships among non-U.S. democratic allies.
The Globe and Mail - The procurement decision is influenced by the demand from U.S. President Trump for NATO allies to increase military spending.
HOW:
DW.com - The future three-nation submarine fleet will comprise Canada, Germany, and Norway, contributing to burden-sharing within NATO, with a total of 24 submarines planned.
The Globe and Mail - The procurement process involved a competitive bidding between Germany’s TKMS and South Korea’s Hanwha, with both bidders proposing economic benefits and partnerships.
The Globe and Mail - The submarines chosen are described as “maximized” for Arctic operations and “fully NATO interoperable.”
(UPDATED July 7, 2026 13:43 UTC)
Canada has awarded a significant multi-billion-euro contract for up to a dozen submarines to ThyssenKrupp Marine Systems, valued at around €20 billion, which is about $22.8 billion. The submarines will be manufactured at TKMS shipyards in Germany, where the company plans to create up to 1,500 jobs, and Canadian Defense Minister David McGuinty announced that the first submarines are expected to be in service by 2035. This deal is seen as a milestone for transatlantic security, with a future submarine fleet involving Canada, Germany, and Norway, contributing to NATO's strategy in the North Atlantic and Arctic, and totaling 24 submarines.
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(UPDATED July 7, 2026 06:22 UTC)
Canada has officially selected Germany’s TKMS to build twelve submarines for its navy, marking the largest military procurement in the country's history. The announcement, made by Prime Minister Mark Carney at HMC Dockyard in Halifax, comes after a competitive bidding process that included South Korea’s Hanwha, which was backed by its government. This decision reflects Canada's strategic shift towards Europe and the influence of U.S. President Trump’s call for NATO allies to increase military spending, with the submarines designed for Arctic operations and fully NATO interoperable.