Derek Holt, an economist at Scotiabank in Canada, believes that U.S. President-elect Donald Trump's demand 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%, which amounts to approximately 40 billion CAD per year. Holt calculates that raising this percentage to the NATO commitment of 2%, if implemented immediately, would equate to about 60 billion CAD per year, although Canada has committed to reaching this target by 2032. Holt estimates that to reach 5% of GDP, if implemented immediately, it would mean up to 150 billion CAD per year, and if implemented by 2032, it would reach 210 billion CAD per year. For an economy of about 3 trillion CAD, the total scale over 10 years would reach 1.5 trillion to 2 trillion CAD. Holt states that this is impossible, and if Canada faces devastating tariffs and the country's deficit explodes, leaving even less room for defense, it certainly won't happen.