According to Golden Finance, Scotiabank economist Derek Holt believes that U.S. President-elect Trump’s request for allies to spend 5% of their GDP on defense this month will make the Western Hemisphere less safe, less reliable, and more vulnerable. . Canada's current spending is about 1.25%, or $40 billion per year. Holt calculated that raising that to the 2 per cent NATO commitment would equate to $60 billion a year if implemented immediately, even though Canada has pledged to reach that target by 2032. Holt estimates that reaching 5% of GDP would mean up to C$150 billion per year if implemented immediately, and C$210 billion per year if implemented by 2032. For an economy of about C$3 trillion, the total size over 10 years would be C$1.5 trillion to C$2 trillion. That's not going to happen, Holt said, and it certainly won't happen if Canada faces devastating tariffs and the country's deficit explodes, leaving even less room for defense.