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Germany's Submarine Deal Set to Draw Canada Closer to Europe
Berlin says a Canadian decision to select German-built submarines over South Korean rivals would mark a new chapter in transatlantic defense cooperation.
Published: July 28, 2026
Germany's government says a Canadian decision to choose German-built submarines for a multibillion-dollar naval contract would strengthen long-term defense ties between Ottawa and Europe. The announcement, expected from Canadian Prime Minister Mark Carney shortly before he attended a NATO summit in Turkey, pit German shipbuilder TKMS, working with Norway, against South Korea's Hanwha Ocean for a contract covering twelve new submarines.
A senior German official said Berlin would welcome the outcome as a positive signal ahead of the NATO gathering, describing the deal as carrying a genuine transatlantic dimension. TKMS, which was spun off from Thyssenkrupp last year, has reportedly discussed a multibillion-dollar investment package covering rare earths and battery chemicals as part of its bid, while German Chancellor Friedrich Merz is said to have personally pushed for the agreement in recent months.
The submarine competition comes as Carney's government looks to broaden Canada's security partnerships beyond the United States, following persistent trade tensions with Washington. A win for the German-Norwegian bid would add to a growing list of defense and economic initiatives linking Canada more closely with European institutions.
