On May 28, 2025, Defence Minister David McGuinty delivered a pivotal speech at the CANSEC trade show in Ottawa, addressing defence industry representatives and emphasizing the government's commitment to accelerated military spending.

This announcement comes in the context of rising tensions, particularly following U.S. President Donald Trump's controversial remarks about annexing Canada and a recent throne speech outlining participation in the $1.25-trillion ReArm Europe defence initiative.

The ReArm Europe pact aims to finance the rearming of European nations and strengthen domestic defence industries, initiated after the U.S. cut military aid to Ukraine amid its conflict with Russia.

Prime Minister Mark Carney's government believes that joining ReArm will not only enhance Canada's defence capabilities but also revitalize the domestic defence sector.

Canada's commitment to the ReArm initiative is framed against a backdrop of increasing trade tensions with the U.S., which significantly influences the country's military supply chains.

Experts have warned that Canada's historically low defence spending could lead to isolation within NATO, underscoring the urgency for increased investment in military capabilities.

McGuinty hinted at plans to exceed NATO's current defence spending target of 2% of GDP, aiming to triple defence spending from 2014 levels by 2030.

NATO's Secretary General has indicated that the defence spending benchmark may be raised to 5% at the upcoming leaders summit in June 2025, aligning with Trump's calls for increased spending from NATO allies.

In his address, McGuinty pledged that the Liberal government would take immediate and decisive action to rebuild Canada's defence capacity and collaborate with contractors.

He acknowledged the frustrations of defence contractors regarding the slow procurement process and reassured them that their concerns were being addressed.

Following his speech, McGuinty is set to travel to Brussels for a NATO defence ministers meeting, where he will discuss collective defence strategies and spending commitments.

The significance of the CANSEC event is further underscored by the participation of former U.S. Secretary of State Mike Pompeo, highlighting its international importance.