OTTAWA - The American ambassador to Canada is closely monitoring the Canadian government's defense budget as it takes shape. However, Ambassador Pete Hoekstra emphasized that the U.S. will not dictate how much Canada should spend. "We're not expecting anything; that's not our job to make those expectations," Hoekstra stated in an interview with The Canadian Press on Friday. This statement came shortly after NATO defense ministers endorsed new spending targets.

Hoekstra highlighted the fundamental purpose of NATO, which is to defend member nations when they are under attack. He acknowledged the sacrifices made by Canadian troops in Afghanistan, noting, "They were fulfilling the commitment that they made to NATO — that when one of us is attacked we are all attacked, and we will defend each other."

While Hoekstra did not directly address U.S. President Donald Trump's earlier comments about countries not paying their fair share for defense, he did recognize that Canada’s defense spending has been an "irritant" in U.S.-Canada relations. Recently, NATO defense ministers convened in Brussels to discuss increasing the member spending target on defense to as much as five percent of GDP. Canada has not met NATO's existing target of two percent since it was established in 2006.

Discussions between Trump and Prime Minister Mark Carney are ongoing, focusing on a new economic and security deal that both leaders agreed to pursue after the Canadian election concluded in April. According to NATO figures, Canada’s defense spending has increased from about one percent in 2014 to 1.33 percent in 2023. The NATO secretary-general’s annual report indicated that Canada’s defense spending is projected to reach 1.45 percent for 2024.

In terms of absolute dollars, a Canadian Global Affairs Institute analysis from last year ranked Canada as the seventh largest spender in NATO and the 14th largest in the world. During the recent election campaign, Carney promised to accelerate Canada’s timeline for meeting the two percent threshold from 2032 to 2030 or sooner, although a concrete plan for achieving this has yet to be presented. Meeting this target will require Canada to allocate billions of additional dollars annually.

The prime minister is scheduled to attend an annual NATO summit starting June 24 in the Netherlands, where leaders are expected to approve a new defense investment plan. This plan would require member nations to invest 3.5 percent of GDP on core defense spending and 1.5 percent on defense-related investments, such as infrastructure and resilience. This proposal arises amid decreasing American commitments and increasing tensions with Russia.

In recent years, both Democrats and Republicans in the U.S. have urged Canada to enhance its Arctic defense capabilities. The previous Biden administration praised Ottawa's Arctic foreign policy outlined last year. Trump has suggested that Arctic defense is part of his "Golden Dome" plan for a continental missile-defense shield. On May 27, he mentioned that it would cost Canada approximately US$61 billion to participate in this project.

Hoekstra stated he has not seen a detailed breakdown of the costs but suggested that the "really awesome technology" would likely be estimated at "proportionally what we think the Canadian share should be."

Defense Minister David McGuinty confirmed that Canada is reviewing its defense spending comprehensively and will provide updates on its plans soon, although the government is not expected to present a budget until the fall. Hoekstra framed NATO as part of the broader security partnership between the U.S. and Canada, which also encompasses secure energy flows and combating illicit drugs. "We need to do the things that will keep our citizens safe," he said, expressing optimism about the future of U.S.-Canada relations.

Hoekstra also commented on Trump's efforts to address what he described as an unsustainable trajectory for the U.S., including issues related to undocumented immigration and significant trade deficits. He noted, "The president is transforming that, because we need to."

The discussions between Trump and Carney are likely to include the recent border security reforms proposed by the Liberal government in Parliament. Hoekstra had not yet reviewed the legislation as of Friday. He emphasized his focus on creating win-win policies for both nations, dismissing the idea of Canada becoming an American state, despite Trump mentioning it as a potential way for Canadians to save on costs associated with the Golden Dome project. Former Canadian diplomat Colin Robertson remarked that Hoekstra's ability to diverge from Trump's comments is limited, but he acknowledged that the ambassador has significant access to the president, which influences his public messaging.