Canada wants to stop sending defense dollars to the US — and it could hit jobs, contracts and portfolios

Canada’s prime minister signaled a policy shift to reduce reliance on U.S. defence suppliers, pledging to build more domestic defence capacity and proposing an extra C$6.6 billion over five years. If enacted, the move could weigh on large U.S. defence contractors (Lockheed Martin, Boeing, General Dynamics) and the wider supplier ecosystem, with potential knock-on effects for hiring, revenue and long-term equity returns. Investors are warned that exposure often hides inside broad index funds and ETFs, so portfolio allocations to defence could face downward pressure. The article also notes investor demand for safe havens (gold/silver) and urges diversification. Markets likely to see gradual, not immediate, impacts; implications could include sector-specific weakness in U.S. defence names, modest portfolio rebalancing flows, and possible FX considerations for USDCAD as trade and procurement patterns shift.