Canadian companies enter defense contracting as Carney pushes to reduce US reliance

Helmet covers, drones, and Arctic sensors top new defense orders

Inside a Toronto garment factory, two workers hunched over sewing machines rapidly stitch together pieces of camouflage-patterned fabric and Velcro strips. In an adjoining room, other workers snip stray threads and inspect the finished product: helmet covers for the Canadian military.

The factory assembles uniforms for Wuxly, a luxury parka maker that is among a flurry of Canadian companies branching into defense contracting as Canadian military spending surges.

The boom reflects Carney’s vow to strengthen Canada’s economic self-sufficiency amid fraying relations with Washington. The push gained new urgency this week with the announcement of new rounds of tariffs in the US-Canada trade dispute.

The expansion extends beyond military apparel. Other Canadian companies are developing remote sensors for the country’s vast Arctic region, making drones to resupply soldiers, and building autonomous robots for military use.