Canada plans to unveil a new strategy that will shift its current reliance on American companies to Canadian military suppliers.

The Canadian government, faced with increasing hostility from the Trump administration, plans to divert billions of dollars in military spending it long gave to U.S. defense companies and direct it instead to domestic manufacturers.

Prime Minister Mark Carney’s wholesale expansion of Canadian military spending was prompted by pressure from President Trump, but with relations between the longstanding allies deteriorating, American companies will no longer reap the benefit.

The new defense industry strategy, which is to be announced this week, is the latest step by Mr. Carney to distance his country from the United States following Mr. Trump’s decision to impose tariffs against several key Canadian industries. The president has also made repeated suggestions that Canada should become the 51st American state.

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