Canada orders German subs in largest contract ever; signals shift in European ties

Prime Minister Mark Carney announced a multi-billion-dollar contract to replace Canada's submarine fleet will be awarded to Germany and Norway—the largest contract of its kind in Canadian history.

The decision marks a significant diplomatic signal beyond defence procurement alone. By selecting European partners over U.S. alternatives, Carney is signalling deeper strategic ties with Germany and Norway and a broader pivot in how Canada cultivates lasting trade and investment relationships.

The choice reflects Carney's approach to international relations, prioritizing practical economic partnerships with key allies. The contract will modernize Canada's aging submarine capability while strengthening defence and trade cooperation with European nations.