Canada is playing hardball with a $40bn submarine contract as it tries to turbocharge investment in civilian sectors ranging from steel and cars to energy and mining, and boost its economic independence from the US.
Long-story-short, Canada is leveraging a $40bn submarine contract to help diversify its economy away from the US.
Hanwah (South Korea) and TKSM (Germany & Norway) are finalists competing to buy 12 Arctic-capable diesel submarines.
Carney is also using the bidding war to extract civilian-sector investments (steel, cars, energy, mining, and technology) as part of a strategy to reduce reliance on the United States.
This shift is driven by:
- Trump’s tariffs
- Trump’s threats to renegotiate the USMCA
- Recent job losses in Canadian manufacturing
Some are describing Carney’s approach as an “art of the deal” moment.
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