The Trump administration has suspended American participation in a key Canada-U.S. defence body dating back to the Second World War, escalating tensions with Ottawa over military spending and Prime Minister Mark Carney’s efforts to deepen alliances outside the United States.On Monday, U.S. Undersecretary of War Elbridge Colby announced the Pentagon would “pause” its participation in the Permanent Joint Board on Defence, an 86-year-old bilateral forum established in 1940 to co-ordinate continental defence and security policy between Canada and the United States.Colby accused Canada of failing to make “credible progress” on its defence commitments despite recent increases in military spending by Ottawa.“A strong Canada that prioritizes hard power over rhetoric benefits us all,” Colby wrote on X. “Unfortunately, Canada has failed to make credible progress on its defense commitments.”The Pentagon official also linked his criticism directly to Carney’s January speech at the World Economic Forum in Davos, where the prime minister warned of a “rupture in the world order” and pushed for middle powers to pursue greater strategic autonomy from Washington..The Permanent Joint Board on Defence was established under the 1940 Ogdensburg Agreement between President Franklin D. Roosevelt and Prime Minister William Lyon Mackenzie King during the early stages of the Second World War. It became one of the foundational institutions for North American defence co-operation and later helped pave the way for NORAD and Arctic defence planning.The board has historically brought together senior military and diplomatic officials from both countries to discuss continental security threats, Arctic sovereignty, infrastructure protection and military interoperability.While the Pentagon described the move as a “pause,” analysts warned the decision carries significant symbolic weight.Imran Bayoumi, a former U.S. defence adviser now with the Scowcroft Center for Strategy and Security in Washington, called the move a “needless provocation” that risks damaging relations with one of America’s closest allies.The last publicly reported meeting of the board took place in Ottawa in November 2024, before President Donald Trump returned to the White House in January 2025.The suspension comes despite Canada recently reaching NATO’s longstanding benchmark of spending 2% of GDP on defence after years of pressure from allies. Ottawa boosted military spending by $9.3 billion in 2025, including pay increases for troops and changes allowing more Coast Guard expenditures to count toward NATO targets..However, the Trump administration has demanded NATO allies move even higher. Alliance members recently agreed to a long-term target of 3.5% of GDP on direct military spending, plus another 1.5% on defence-related infrastructure over the next decade.Colby signalled Washington expects Canada to meet those new targets quickly.“We’re working closely to ensure every NATO partner, including Canada, reaches the Hague Summit’s 3.5% GDP defense spending target,” Colby wrote in another social media post alongside a photo with U.S. Ambassador to Canada Pete Hoekstra.The dispute also reflects broader friction between Ottawa and Washington since Trump resumed office. Carney has repeatedly spoken about diversifying Canada’s economic and security relationships beyond the United States following renewed trade disputes and Trump’s repeated comments about Canada becoming the “51st state.”In recent months, Carney’s government has pushed deeper defence ties with European allies and backed plans for a new multinational defence financing institution headquartered in Canada.Former Conservative leader Erin O'Toole criticized the Pentagon’s move as “profoundly misguided,” saying Canada remains a reliable ally that has fought alongside the United States for generations.Online reaction to the Pentagon announcement was sharply divided, with many commenters on military and political forums describing the move as unprecedented and potentially damaging to continental defence co-operation.