Canada and Australia, traditional U.S. allies, have successively declared defense self-reliance. Canada put forward a "Made in Canada" strategy to drastically reduce dependence on U.S. weapons, while Australia decided to pour in massive funds to establish nuclear-powered submarine construction facilities and an advanced defense technology fund.
It is seen as a reaction to explicit America First policies, aiming to reduce security dependence and foster domestic defense industries. As Western allies that had stayed under the U.S. security umbrella turn to self-help, analysts say a global defense supply chain reshuffle, including for Korean corporations, has become inevitable.
Prime Minister Mark Carney of Canada on the 17th local time announced a new defense industry strategy in Montreal, making clear the intention to move away from a U.S.-centric security framework. Carney said, "There are many advantages to partnership with the United States, but it is a kind of 'dependency,'" adding, "We must expand an independent defense industrial base so we are not held hostage to other countries' decisions on security matters." The new strategy unveiled by the Canadian government is summed up in three words: "Build, Partner, Buy." In procuring military equipment, domestic production will be prioritized, collaboration with allies will come only when that is impossible and contingent on technology transfer, and direct overseas purchases will be a last resort.
The strategy includes a concrete goal to allocate 70% of federal government defense contracts to domestic corporations within the next 10 years. Currently, domestic corporations account for 43% of Canada's contracts. To raise the share by nearly 30 percentage points over 10 years, the federal government will invest a record budget totaling 500 billion dollars (about 490 trillion won), including 180 billion Canadian dollars (about 176 trillion won) for military equipment procurement and 290 billion Canadian dollars (about 284 trillion won) for defense infrastructure over the next decade. Carney said, "For decades, Canada relied solely on geographic advantages and other countries' protection, neglecting defense expenditure and industrial investment," adding, "This has created vulnerabilities we can no longer afford."
On the 6th, President Trump signed an executive order to prioritize producing weapons needed by U.S. forces domestically and to pressure allies to purchase U.S.-made equipment. The order specified that allies must shoulder more regional security responsibilities and swiftly purchase cutting-edge U.S. weapons to do so. In effect, it is a forced sale of U.S. weapons and a brushback pitch against allied defense corporations. For this reason, some said Carney's announcement carries a rebuttal to Trump's "buy American" demand with "Canada first." Bloomberg analyzed, "The plan is a direct response to Trump's aggressive security and trade policies and tariff threats."
Australia is also accelerating efforts to secure independent defense capabilities. On the 15th, as part of the AUKUS (U.S.-U.K.-Australia security alliance) agreement, the Australian government approved an initial 2.8 billion Australian dollars (about 2.5 trillion won) to build new submarine construction facilities in Osborne, South Australia. Prime Minister Anthony Albanese described it as a "down payment for a project that will require about 30 billion Australian dollars (about 27 trillion won) over the long term," and said it is "an essential facility for Australia to build conventionally armed nuclear-powered submarines domestically."
Australia moved to cultivate not only hardware but also software power. Minister Pat Conroy of Australia's defense industry is scheduled on the 19th to announce plans to create a 1 billion Australian dollar (about 900 billion won) "Advanced Capability Investment Fund." The fund will co-invest with venture capital to support startups developing advanced defense technologies such as hypersonic missiles, artificial intelligence (AI), autonomous systems and quantum technology. Bloomberg reported, "Pursuing its biggest military buildup since World War II, Australia seeks to channel more of its defense budget to domestic innovative corporations." This benchmarks the model of U.S. Silicon Valley venture capital flowing into defense technology and is an attempt to reshape Australia's defense ecosystem.
However, experts noted it is uncertain whether Canada's and Australia's attempts will succeed. It will not be easy to rebuild in a short time a defense ecosystem that has long depended on the United States. Michael Byers, a professor at the University of British Columbia, said, "Canada's defense industry is dominated by subsidiaries of U.S. giants such as Lockheed Martin and General Dynamics," adding, "Achieving the 70% target with purely domestic corporations, without including these foreign-affiliated subsidiaries, is close to impossible." Australia's venture fund is also modest relative to the overall defense budget, making it crucial how much private investment it can attract.
Meanwhile, Western allies' "standalone defense industry" push is expected to be both a crisis and an opportunity for Korea's defense sector. Both Canada and Australia are strongly demanding domestic production and technology transfer. Under Canada's "Build, Partner, Buy" strategy, for Korean corporations to export weapons to Canada, not just sales of finished goods but local production facilities or technology partnerships are essential. Carney said, "We will partner with allies only when domestic production is impossible." This means higher initial entry barriers. At the same time, being included among "partners" would also mean securing a stable supply chain.
In fact, Korean corporations are moving quickly. Hanwha Ocean and HD Hyundai Heavy Industries are currently competing with Germany and others for Canada's next-generation submarine program (CPSP), estimated at up to 60 trillion won. With Canada's strategy announcement, local construction and technology transfer capabilities have emerged as key variables in the bidding war. In the Australian market, Hanwha Aerospace has already laid the groundwork to be recognized as "Australian-made" by establishing local production bases for K9 self-propelled howitzers and Redback armored vehicles.
Wendy Gilmour, former deputy assistant secretary-general for defense investment at NATO, said, "In most cases, Canadian corporations have focused on supplying parts rather than competing directly with the United States," and predicted the two countries' strategies would not directly collide. Still, friction is likely to continue where "America first" and "Canada first" meet head-on.