Canada Aims to Boost Steel and Auto Sectors with $6.2 billion in Support
Prime Minister Mark Carney of Canada and Ontario Premier Doug Ford announced Wednesday a C$8.7 billion (US$6.2 billion) investment plan for its steel and auto sectors, which have been hit by US tariffs. Support will also be directed at Canada’s critical minerals supply chain.
According to the official statement, through this new action plan, the Government of Canada and the Government of Ontario will protect Ontario’s steel industry by:
• Establishing a new Joint Steel Action Fund, with five-year funding commitments of C$3.55 billion from Canada and C$1.67 billion from Ontario to diversify production, prepare Canadian steel firms to support emerging and growing Canadian industries such as defense, advanced manufacturing and energy and trade infrastructure, and open up new overseas markets for Canadian steel.
• Leveraging the Buy Canadian Policy and the Buy Ontario Policy to prioritize Canadian steel in public procurement and strengthen domestic demand.
• Strengthening protections against foreign steel dumping and unfair subsidizing through enhanced enforcement by the Canada Border Services Agency and tighter trade remedy practices and compliance measures.
• Establishing a Canada-Ontario Steel Task Force to provide strategic advice and guidance on the implementation of measures to support the steel sector and improve its competitiveness. Its first priority will be identifying ways to reduce steel shipping costs and recommend new measures as needed, including the effectiveness of trade measures and recent import trends.
Support is also aimed at fortifying Ontario’s automotive industry by:
• Investing an additional C$2.5 billion over two years in capital projects to enable manufacturers to invest in modern machinery and upgraded production lines to build the connected and electric vehicles of the future. This funding is comprised of C$1.5 billion from the federal government and C$1 billion from Ontario.
• Maintaining Canada’s greenhouse gas emissions standards for new light-duty vehicles at 2026 levels through the 2029 model year – with annual increases resuming in the 2030 model year, in line with Canada’s 2035 electric vehicle target set out in Canada’s new Auto Strategy.
• Establishing a Canada-Ontario Automotive Task Force to support the industry’s transition and better coordinate the implementation of new measures.
The government also plans to build out Ontario’s critical mineral supply chain by:
• Advancing essential road infrastructure to support critical mineral development in Northern Ontario’s Ring of Fire region by the Canadian government matching the provincial government’s initial investment of up to C$1 billion over three years.
• Establishing a coordinated process for provincial and federal permitting to help streamline approvals and further speed up building, and other measures.