Canada and Finland Pursue Separate Paths in ‘Icebreaker Diplomacy’ with the U.S.

MILAN — Canadian and Finnish shipbuilders are presenting differing strategies to the United States regarding the production of new icebreakers for the U.S. Coast Guard. This comes in response to President Donald Trump's January proposal to acquire 40 new icebreakers, a move emphasized by Finland and Canada as they seek to establish their foothold in the competitive shipbuilding market.

Finnish President Alexander Stubb highlighted Finland's ambition to engage in "icebreaker diplomacy" ahead of his recent meeting with Trump. He articulated hopes that this approach would strengthen Finland's ties with the U.S. and enhance bilateral relations.

In contrast, a leading Canadian shipbuilder, Seaspan, is actively vying for a share of this emerging contract. David Hargreaves, Seaspan’s Senior Vice President of Business Development, explained, “Finland is most definitely trying to build the U.S. icebreakers in Finland,” while simultaneously exploring opportunities for the U.S. to utilize Finnish designs for domestic production.

Hargreaves noted that discussions surrounding cooperation have gained traction in Washington, particularly among political figures and U.S. shipyards that are equipped to build these specialized vessels. He indicated that collaboration between the countries could focus on utilizing Canadian expertise while fulfilling the requirement established by U.S. law that mandates the majority of Coast Guard vessels be constructed in American shipyards to bolster national security and support local industries.

President Trump has expressed a desire for rapid delivery of new icebreakers, as the current fleet nears the end of its operational lifespan. Nevertheless, he is also keen on revitalizing American shipbuilding capabilities. “It really depends where America puts its priority,” Hargreaves stated. “If it’s on schedule, then Finland is probably the right answer. If they prioritize having their own sovereign shipbuilding capability, then Finland might not be the right choice.”

A potential hybrid approach has been suggested, where the U.S. could quickly procure one or more icebreakers from Finland while simultaneously developing projects to build additional vessels domestically.

Despite Trump’s proposed acquisition of 40 new vessels, a 2023 assessment concluded that the Coast Guard would require between eight to nine polar icebreakers to effectively carry out its missions in the Arctic, which would include a mix of heavy and medium vessels.

The dynamics of trade between Canada and the U.S. have become increasingly strained in recent months due to tariffs and countermeasures. On April 9, Canada extended tariffs on American automobiles and parts, while the U.S. announced a 90-day suspension of certain tariffs. However, Hargreaves noted that the shipbuilding sector has largely managed to navigate these tensions, with ongoing collaboration between Canadian and American firms remaining robust.

“We are a business looking at opportunities,” Hargreaves remarked. He emphasized the importance of focusing on long-term business strategies rather than getting entangled in current political disputes.

In a broader context, representatives from Canada, Finland, and the United States continue to work on the Icebreaker Collaboration Effort, or ICE Pact, aimed at leveraging combined expertise in Arctic icebreaker technology. The next meeting scheduled for May will focus on advancing discussions about icebreaker design and production, workforce development in shipyards, and research related to polar regions.

About the Author
Elisabeth Gosselin-Malo is a Europe correspondent for Defense News, covering military procurement and international security, with a specialization in the aviation sector. She is based in Milan, Italy.