Canada rolls out multibillion plan for steel, autos

Canada’s federal government and Ontario have unveiled a multibillion‑dollar package to shield key manufacturing sectors from the impact of U.S. trade tariffs. Prime Minister Mark Carney and Ontario Premier Doug Ford announced a joint plan totalling $8.7 billion on Parliament Hill, aimed primarily at steel, auto manufacturing and critical minerals. The measures are designed to support industries in Ontario that have been battered by a prolonged tariff dispute with the United States.

The initiative is framed as a long‑term response to what provincial and federal leaders describe as a lasting change in the Canada‑U.S. economic relationship. Ford said the two countries are "not going back to the way things were" and stressed the need to plan accordingly. The funding is structured over multiple years and combines federal and provincial resources for sector‑specific programs.

At the core of the announcement is a new joint steel action fund that will channel $3.5 billion in federal money and $1.7 billion from Ontario over five years. The funding is intended to help steel companies expand the types of products they make and diversify their markets. It is expected to protect roughly 100,000 jobs in the steel sector.

The steel package also includes a commitment to strengthen protections against foreign steel dumping. Planned measures include stronger border enforcement and other tools aimed at preventing unfairly priced imports from undercutting domestic producers. Separately, federal programs totalling billions of dollars are being directed to diversify Canadian steel production and open new overseas markets as part of the broader response to U.S. tariffs.

The overall plan allocates $2.5 billion to the automotive sector, with the federal government providing $1.5 billion of that amount. The funding is intended to help automakers adapt their operations to meet growing demand for electric vehicles. Officials present the support as a way to bolster a cornerstone manufacturing industry while it undergoes technological change.

Canadian auto exports to the United States have fallen more than 10 percent, while U.S. auto exports to Canada have dropped more than 20 percent, Carney said. He warned that tariffs "make both our industries weaker and reduce choice for our families," arguing that reduced cross‑border trade harms consumers and producers on both sides of the border.

Beyond steel and autos, the package includes $1 billion in federal funds over three years for the Ring of Fire mining development in northern Ontario. The money will be used to build out roads and related infrastructure to support critical minerals projects. Support for critical minerals is positioned alongside manufacturing measures as part of a broader industrial response to the tariff environment.

U.S. President Donald Trump’s trade war has been in place for more than a year and a half, affecting key Canadian sectors including automotive and steel manufacturing. Carney said he spoke with Trump "for quite some time" on a recent Wednesday, discussing trade as well as international issues, and reiterated that Canada remains ready to negotiate. Talks previously collapsed after the United States imposed 50 percent tariffs on around $20 billion in Canadian goods, prompting retaliatory measures from Canada.