Canada has awarded a 12‑submarine order to Germany’s TKMS. The vessels, each 3,000‑tonne diesel‑powered units built for Arctic conditions, represent the largest single defense purchase in Canadian history. Prime Minister Mark Carney announced the deal at a Halifax naval base, noting that the programme will drive economic activity across the country and that four subs should be operational by 2034.

The agreement aligns with Ottawa’s pledge to raise defense spending to 5 % of GDP by 2035, after meeting the 2 % target last year. President Trump’s threat to cut U.S. security guarantees has spurred Canada to look beyond Washington, and the contract may influence the decision to switch from U.S. F‑35 jets to Sweden’s Gripen.

Financial markets reacted swiftly; shares of South Korean rival Hanwha Ocean fell 22 % after the announcement. While TKMS argues that lifetime support packages will push the per‑unit cost above $1.1bn, the company’s production capacity is heavily constrained, raising concerns about delivery timelines.

The German‑Norwegian package promises shared logistics, maintenance and crew training, tightening interoperability within NATO. The deal positions Canada to deepen ties with Europe and may reshape procurement strategies as the country seeks more autonomous defense capabilities.