Carney says NATO spending shift underway amid Trump pressure on allies

“That’s gaining momentum,” Carney said. “That’s part of the point I made to President Trump when we spoke a few days ago … It’s not just he’s winning the argument, he’s won the argument.

“Countries recognize that they need to take more responsibility, see the direct threats.”

The prime minister said global security threats are “changing rapidly” along with advances in military technology, from hypersonic missiles to autonomous warfare.

Carney spoke with Trump on Sunday and told reporters the president was in a good mood, as he was when he attended a dinner for NATO leaders on Tuesday night.

Although when Trump appeared at the conference and spoke with Secretary-General Mark Rutte, the president emphasized he is still upset with alliance members and threatened to end trade with Spain.

“I’m not happy with NATO because of what they did with Greenland, and I’m not happy with NATO because of the fact that they didn’t want to help us with the number one state sponsor of terror, that’s Iran,” Trump said.

Trump’s war with Iran and past threats to annex Greenland have heaped strain on the alliance. Trump added that he would raise Greenland as an issue during the North Atlantic Council meeting.

Rutte sought to assuage Trump ahead of that meeting, telling him he was responsible for a massive surge in military budgets across the alliance.

“It’s really important when it comes to when it comes to NATO, what you have achieved, and this is a huge win,” he said.

Around the summit, allies announced tens of billions of dollars in new military spending.

Ahead of arriving in Turkey this week, Carney announced German manufacturer TKMS will be the preferred bidder for Canada’s next navy fleet of submarines.

The massive contract will rocket up Canada’s military spending, helping it make the case to NATO allies that it’s stepping up on defence.

The German-Norwegian bid narrowly beat South Korea’s Hanwha to become the preferred contractor, although Hanwha could still win the contract if negotiations with TKMS fall through.

Asked if there would be a consolation prize to smooth over relations, Carney said Canada is already hammering out other plans with Seoul.

He said he had a productive meeting on Tuesday with President Lee Jae Myung.

“Obviously, he was disappointed, but the conversation immediately pivoted — at his initiative — to a series of issues around AI and technology risks and how we can continue to deepen our co-operation there,” Carney said.

“That’s not a consolation prize. That is allies working together strategically on important issues.”

This report by The Canadian Press was first published July 8, 2026.

Kyle Duggan, The Canadian Press

by The Canadian Press

Carney says NATO spending shift underway amid Trump pressure on allies

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