TORONTO (Reuters) – Canada’s Liberal government will pour extra billions into its armed forces and hit NATO’s 2% military spending target this fiscal year, five years earlier than promised, Prime Minister Mark Carney said on Monday.

Canada has been under pressure from the United States and other NATO allies for years to increase military funding. Canada currently spends about 1.4% of GDP on defense.

“Now is the time to act with urgency, force, and determination,” Carney said in a speech in Toronto, reiterating promises to work more closely with Europe’s defense industry.

Carney won the April 28 election on a promise to stand up to U.S. President Donald Trump’s tariffs and also to reduce the country’s military reliance on Washington.

Carney said another reason for Ottawa to act was what he called the decision by the United States to gradually withdraw from the concept of collective security.

“Rising great powers are now in strategic competition with America. A new imperialism threatens. Middle powers compete for interests and attention, knowing that if they are not at the table, they will be on the menu,” he said.

The previous Liberal government last year formally committed to hit the NATO target by 2032. During the election campaign Carney pledged to get to 2% by 2030.

Canada will boost pay for the armed forces and buy new submarines, aircraft, ships, armed vehicles and artillery, as well as new radar, drones and sensors to monitor the sea floor and the Arctic, Carney said.

“The transformation of our military capabilities can help transform our economy,” he said.

Officials are due to give more details of the plan before Carney speaks to the media at 1 p.m. Eastern Time (1700 GMT).

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(By Wa Lone; Additional reporting by Nilutpal Timsina in Bengaluru and Promit Mukherjee; writing by David Ljunggren; editing by Rod Nickel)