On March 26, 2026, Canada reached the NATO defence spending target of two per cent of GDP for the first time in decades. The government achieved this after a late boost to defence funding, supported by internal reorganization and measures to strengthen the military. The milestone reflects Canada’s efforts to meet allied expectations and reinforce its defence capabilities.

Today, Dr. Philippe Lagassé and Dr. Stephen Saideman analyze the significance of Canada reaching 2% of GDP on defence spending, exploring whether it materially enhances Canadian security, the future of NATO, and the challenges of achieving the next alliance target of 5%, building a domestic defence industrial base, trade-offs required for higher spending targets, and the impact of U.S. President Donald Trump’s rhetoric on the Canadian public’s increased interest in defence and whether that interest can be sustained.

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The CDA Institute is a non-partisan think tank that conducts research and education programming on defence and security.

The CDA Institute is a non-partisan think tank that conducts research and education programming on defence and security.

Learn more: CDA Institute