Trudeau Calls NATO Target ‘Crass’ But Sets 2032 Deadline to Meet It

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(Bloomberg) — Prime Minister Justin Trudeau says Canada will hit NATO’s requirement to spend 2% of gross domestic product on defense, even as he described the target as a “crass” metric that doesn’t adequately measure the country’s contributions to the alliance.

The Canadian leader, under fire from allies at this week’s North Atlantic Treaty Organization summit, announced Thursday the government will reach the minimum spending goal by 2032. He gave few concrete details of how it would do that, however. 

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Some 23 of NATO’s 32 members are expected to hit the 2% target this year, while Canada is projected to spend 1.33% of GDP. Pressed repeatedly by reporters on why he had not released a plan sooner, Trudeau acknowledged the government has long struggled with the idea of 2% as the “be-all and end-all” of judging a NATO member.

“Canada over the past decades has been there to lead in NATO,” he said in Washington. “We continually step up and punch above our weight — something that isn’t always reflected in the crass mathematical calculation that certain people turn to.”

The prime minister and his officials appeared to be grappling all week with how to handle the issue. Senior US Republicans, including US House Speaker Mike Johnson and Senator Mitch McConnell, publicly took aim at Canada’s low level of military spending, putting Trudeau on the defensive.  

As of Wednesday morning, Canadian officials were still weighing options on defense outlays and debating how to fit them into its broader fiscal plan, said a senior government official, asking not to be named in order to discuss private conversations.

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To defuse some of the criticism, Trudeau’s government opted to accelerate announcements that it had intended to make later — including the start of the procurement process for as many as 12 new submarines. 

On Thursday, he cited those purchases — certain to take many years and billions of dollars — as investments that will eventually help Canada boost spending to the NATO goal. The government’s defense policy update in April laid out nine other possibilities, including acquiring long-range missiles and modernizing artillery capabilities.

‘Frustrations and Concerns’

US National Security Advisor Jake Sullivan applauded the move, saying Canada’s commitment means that all NATO members now have a pathway to the target.

“In fact Canada, the final ally that doesn’t have a plan in place for 2%, is getting one in place, so we’ve got all 32 allies now on track to get to 2%,” he told reporters Thursday. “I think the broad message coming out of the summit is not just unity, but purpose and resolve and strength from the NATO alliance on our 75th anniversary.”

The Canadian government has added C$175 billion ($128 billion) in defense spending since 2015, the prime minister said. This year’s defense policy update pledged to strengthen Arctic security and lift defense spending to 1.76% of GDP by 2030. Another defense policy update is slated for 2028, Trudeau said, when Canada would explore further opportunities to increase spending.

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An election is expected in fall 2025, and polls say Trudeau is currently trailing his main opponent, Conservative Leader Pierre Poilievre, by a wide margin.

Conservative lawmaker James Bezan said Thursday’s announcement of a 2032 timeline was “just another promise Justin Trudeau has no intention of honoring.” If the government were serious about reaching 2%, a plan would have been included in the defense policy update a few months ago, he said in a statement. “No one believes the Liberals are serious with this last-minute desperation to save face at NATO.”

Goldy Hyder, chief executive officer of the Business Council of Canada, said in a statement that Trudeau’s announcement failed to include any details on how the target would be achieved. “Given the lack of detail, today’s announcement is unlikely to address the many frustrations and concerns expressed by leaders this week in Washington.” 

—With assistance from Josh Wingrove.

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