Statement from Dennis Darby, President and CEO, Canadian Manufacturers & Exporters regarding federal increase in Canadian defence spending

OTTAWA, June 10, 2025 – Canadian Manufacturers & Exporters (CME) welcomes this week’s announcement by the federal government that it intends to increase funding for Canada’s armed forces and meet NATO’s two per cent military spending target this fiscal year.

In the current geopolitical environment, Canada can no longer afford not to invest in our national defence. Increased and sustained defence investment is essential not only to protect Canadians but also to strengthen our role as a reliable partner in global security.

Canadian manufacturers stand ready to support this effort. Our industry possesses world-class capabilities and expertise in producing advanced defence equipment, components, and services— trusted by Canada’s armed forces and our allies alike.

Increased investment in national defence creates important opportunities for manufacturers to expand production capacity and strengthen support for Canada’s military and foreign policy objectives. A more capable and resilient domestic defense industrial base will not only reinforce our national sovereignty but also position Canadian industry as an even stronger partner in advancing collective defence priorities.

As Canada moves forward with this investment, it will be important to understand how it will factor into the government’s commitment to negotiate a new economic and security partnership with the United States. Any new partnership must include, as a priority, the full removal of unwarranted tariffs that have harmed the industrial base of both of our closely integrated economies.

CME will continue to work with the federal government to ensure that Canadian manufacturers play a central role in building the capabilities Canada’s armed forces need — and that our broader economic and security interests are fully advanced.