In a bold step toward strengthening transatlantic ties without relying on Washington, Canada and the European Union signed a major defense agreement on Monday — one of the most extensive security partnerships ever forged between the two.

The deal, signed in Brussels, comes at a time when both Canada and the EU are rethinking their strategic future amid a more isolationist stance from the United States under President Donald Trump.

🛡️ The new pact gives Canada access to the EU’s €150 billion ($173 billion USD) defense procurement program, opening doors for Canadian defense companies to bid on major European military projects — a significant shift in the global defense landscape.

Standing alongside EU Commission President Ursula von der Leyen and European Council President António Costa, Canadian Prime Minister Mark Carney hailed the deal as a step toward “greater strategic independence and closer cooperation between democracies.”

Since returning to office, President Trump has pushed NATO allies to increase military spending while threatening to scale back America’s commitment to the alliance. He has questioned whether the U.S. would come to the defense of NATO members, launched a new trade war, and accused traditional allies of taking advantage of U.S. security guarantees.

As a result, countries like Canada, Germany, France, and others in the 27-member EU bloc are rapidly increasing their own defense budgets and forming new strategic pacts to fill the leadership void.

At a NATO summit scheduled for Tuesday in The Hague, alliance members are expected to announce a sharp increase in defense spending — largely in response to Trump’s pressure.

But it’s clear that many allies are also looking for alternatives.

Canada’s entry into the EU’s defense procurement program marks a major victory for its domestic defense industry.

Before this deal, nearly half of Canada’s defense exports went to the U.S. This agreement opens the door to Europe — offering new markets, diversified partnerships, and a reduced dependence on Washington.

However, there’s a catch: under the EU rules, only 35% of the funding for a project can be spent on non-member countries. That restriction has driven countries like the UK, Australia — and now Canada — to form formal agreements to stay competitive.

The U.S. has no such agreement, meaning American-made weapons like the F-35 or Patriot missiles will face purchase limits under this program — a move that could cost U.S. defense firms billions.

📈 For Carney, who campaigned on an anti-Trump platform and won in April, the defense pact also carries political weight. It underscores Canada’s desire to stand on its own and signals a deeper realignment in global alliances.

European Commission President von der Leyen called the new deal with Canada “the most comprehensive we’ve ever concluded.” In a pointed remark toward Washington, she added:

The agreement reflects more than just defense cooperation — it’s a message that the EU and Canada are doubling down on democratic values and mutual reliability, even as the U.S. steps back.

Carney echoed that sentiment, emphasizing the importance of strategic diversification in a world shaped by geopolitical unpredictability.

Interestingly, a recent poll shows that nearly 50% of Canadians support exploring EU membership — a theoretical (and impractical) idea, but one that illustrates the shifting sentiment in the country.

While EU officials have made it clear that formal Canadian membership is off the table, the enthusiasm reflects a broader desire for deeper integration with stable, like-minded partners.

The Canada-EU defense pact is more than just a contract — it’s a clear signal of where the world is heading. With America becoming less predictable under Trump, countries are reshaping their alliances.

This deal gives Canada:

As von der Leyen said, it’s time for allies to take their partnership “to the next level.” Canada just did.