Scotiabank economist Derek Holt believes that U.S. President-elect Trump's request that allies spend 5% of GDP on defense this month will make the Western Hemisphere less secure, less reliable and more vulnerable. Canada's current spending is about 1.25%, or CAD $40 billion per year. Holt calculates that raising this to 2% of the NATO commitment would be equivalent to CAD $60 billion per year if implemented immediately, although Canada has committed to reaching this target by 2032. Holt estimates that to reach 5% of GDP, if implemented immediately, would mean up to CAD $150 billion per year, and to CAD $210 billion per year if implemented by 2032. For an economy of about 3 trillion Canadian dollars, the total size over 10 years would be 1.50 trillion to 2 trillion Canadian dollars. Holt said that's not going to happen, and certainly not if Canada faces devastating tariffs and the country's deficit explodes, leaving less room for defense.