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Carney government excludes U.S. bidders from $4.9B army vehicle contract

Published July 9, 2026 at 8:09 AM UTC

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In a significant move, the Carney government has decided to exclude U.S. companies from participating in a $4.9 billion contract for the procurement of new army vehicles. This decision marks a departure from previous practices where U.S. firms were eligible to bid on such contracts. The exclusion is part of Canada's broader strategy to bolster domestic defense manufacturing capabilities and reduce reliance on foreign suppliers. The government has emphasized the importance of supporting local industries and creating jobs within the country. Critics, however, argue that this move could lead to increased costs and potential delays in the delivery of the new vehicles. They also express concern that it may strain relations with the United States, a key ally in defense matters. The Carney administration has defended its decision, stating that the long-term benefits of strengthening Canada's defense industry outweigh the short-term challenges. The contract is expected to be awarded to Canadian companies, with the first deliveries anticipated within the next two years.