US-Canada Defense Industrial Cooperation Erodes Amid Mutual Hedging Strategies (warontherocks.com)

• US suspended Canadian Permanent Joint Board on Defense after Canada failed to present credible plan for 3.5% GDP defense spending by 2035.
• Canada's Carney government pursues hedging: expanding military spending, seeking EU defense partnership, and bolstering sovereign capabilities in AI, clean energy, critical minerals, and defense tech.
• Congress attempts to constrain executive discretion via NDAA provisions, but reputation damage may persist.

"The Pentagon suspended the 86-year-old Canadian Permanent Joint Board on Defense, citing Canada's lack of a credible plan for 3.5% GDP defense spending. In response, Canada under PM Carney is diversifying defense partnerships, seeking a pact with the EU, and building domestic capabilities, reducing reliance on the US. The article argues that US coercion undermines long-term industrial integration and trust."