The federal and Ontario governments have announced another weapon against tariffs imposed by the U.S. administration.
Prime Minister Mark Carney and Premier Doug Ford were in Ottawa on Wednesday afternoon to announce an $8.7-billion partnership to boost the tariff-affected steel and automotive industries.
The joint investment includes $2.5-billion to support Ontario's current roster of auto industry employees, including those in southwestern Ontario. It will help upgrade assembly lines and support the purchase of state-of-the-art equipment.
"Ontario workers in plants from Windsor to Woodstock can build the vehicles of the future, safeguarding more than 120,000 direct jobs in our auto sector," said Carney.
The prime minister added that tariffs have negatively affected both nations’ economies since the Trump administration began them in early 2025, and the effects are now seen.
"Canada's auto exports to the U.S. have declined by more than ten per cent," said Carney. "U.S. exports to Canada have fallen by over 20 per cent, even though Canada, far and away, is still the United States' largest customer. Nobody wins from this. Tariffs make both our industries weaker and reduce choice for our families."
The steel industry will receive just over half of the joint investment. Ford said that the sector has been seriously hit.
"We're protecting workers in our tariff-hit steel sector with a commitment of more than five billion dollars in new funding, to help the sector diversify production, find new markets overseas, and support emerging Canadian industries," said Ford.
Another $1-billion from Ottawa will be matched by Queens Park to build roads and highways in the province's "Ring of Fire" region, which Carney said would create 70,000 jobs. Ford said work on those roads began this summer.
