Prime Minister Carney and Ontario Premier Doug Ford have unveiled nearly $9 billion in supports for the province’s tariff-hit auto and steel sectors.
The commitments under the “new action plan” include $5 billion to help upgrade Ontario steel mills and $2.5 billion to help the province’s ailing auto industry pivot to electric vehicle production.
There is also $1 billion to help build roads to the mineral-rich Ring of Fire region in Northern Ontario.
The prime minister framed the plan as part of ongoing efforts to bolster Canada’s economy in the face of a drawn-out trade war with the United States.
U.S. President Donald Trump’s trade war has dragged on for more than a year-and-a-half, slamming key Canadian sectors, including automotive and steel manufacturing.
“U.S. tariffs have upended a trade bargain that’s existed for decades. They have raised costs for American families while putting Ontario workers and businesses at a disadvantage and under a cloud of uncertainty,” Carney said during a joint news conference with Ford in Ottawa on Wednesday afternoon.
“We can’t control what others do, so we are focusing on what we can control—and building Canada strong at home and diversifying our partnerships abroad.”
Carney said the investments would help to create 70,000 jobs linked to the Ring of Fire and protect some 220,000 linked to the other industries.
“Protecting what we have is not enough. We must go further. To transform our economy. To secure our future,” the prime minister said.
Premier Ford welcomed the “historic agreement,” which will see Ontario pitching in $2.67 billion.
“As we stand here today, it’s clear that Canada’s relationship with the United States has changed permanently,” Ford said.
“No matter what happens in the midterms, no matter who sits in the White House, we’re not going back to the way things were, and we need to plan accordingly.”
What’s in the action plan?
The two levels of government are launching the Joint Steel Action Fund, which they said will support the steel industry to make products that many Canadian companies need.
“We have the best steelworkers in the world and vast natural resources. Yet we import over 6.5 million tonnes of steel a year. Often that’s because we don’t make the steel Canadian companies need. It’s time to be our own best customer,” Carney said.
The federal government is also strengthening CBSA enforcement to protect against foreign steel dumping.
“When Canadian projects need specialized steel, they can increasingly count on Canadian mills and Canadian steelworkers to supply it,” the prime minister said.
The federal government also announced that it would freeze Canada’s fleet average performance standard at 172 grams per mile for new light-duty vehicles through 2029. Annual increases will resume in the 2030 model year line.
The freeze, the government said, would provide manufacturers with “near-term flexibility at a time when the industry is facing trade-related pressures.”
“Ontario and Canada are being challenged right now. We see it in every corner of our province, where tariffs and trade uncertainty are leaving workers and their families worried. But my message is very simple: working together, we will be there to support you no matter what,” Ford said.
“Today’s agreement will fortify and transform these sectors to become the foundation of our future prosperity.”
With files from The Canadian Press
Correction
A previous version of this story suggested that the $8.7 billion in funding was coming solely from the federal government. The aid package is made up of funding from both the Ontario and federal governments.
