Ottawa, Ontario launch $8.7B tariff action plan

Key Takeaways:

• Ottawa and Ontario announced an $8.7-billion joint action plan to shield automotive, steel, and critical mineral industries from U.S. tariffs.
• The strategy features a $5-billion steel fund, $2.5 billion for auto manufacturing, and $1.2 billion for Ring of Fire mining road infrastructure.
• Joint federal-provincial task forces will streamline mining approvals and oversee sector transition plans.

The Whole Story:

Prime Minister Mark Carney and Ontario Premier Doug Ford have unveiled a joint $8.7-billion industrial action plan aimed at safeguarding the automotive, steel, and critical mineral sectors against ongoing U.S. tariffs and global trade volatility.

Announced in Ottawa, the coordinated strategy combines federal and provincial investments to fortify domestic manufacturing, streamline infrastructure approvals, and support workers affected by international trade measures.

Core elements of the joint action plan include:

• Steel Industry Protection: A $5-billion Joint Steel Action Fund to modernize domestic steel manufacturing, expand production capacity, reduce shipping costs, and enforce stricter anti-dumping measures via the Canada Border Services Agency. A Canada-Ontario Steel Task Force will oversee implementation.
• Automotive Sector Fortification: $2.5 billion in funding and regulatory flexibilities to support the electric vehicle (EV) supply chain, including freezes to fleet emissions targets at 2026 levels through 2029 to provide near-term compliance relief for domestic auto assembly plants. A Canada-Ontario Automotive Task Force will coordinate sector transition strategies.
• Ring of Fire Development: $1.2 billion committed to accelerate critical mineral extraction in Northern Ontario’s Ring of Fire region. The federal government will match Ontario’s $1-billion commitment to construct a 500-kilometre all-season access road, while establishing a joint federal-provincial working group to coordinate environmental assessments and First Nations economic partnerships.
• Workforce Transition Supports: $3.5 billion in federal Rapid Response Supports to extend Employment Insurance (EI) flexibilities and deliver targeted re-training for workers displaced by U.S. trade actions.

“From mine to mill to assembly line, Canada and Ontario are protecting jobs today and making bold investments that will build a stronger, more resilient, more independent Canadian economy for tomorrow,” said Prime Minister Mark Carney. “Today’s action plan is cooperative federalism in action.”

Ontario Premier Doug Ford noted that changing trade dynamics necessitate a fundamental pivot toward domestic production: “As we stand here today, it’s clear that Canada’s relationship with the United States has changed permanently… Today’s agreement will fortify and transform these sectors to become the foundation of our future prosperity.”

The agreement also reinforces federal “Buy Canadian” procurement mandates for major national infrastructure projects and maintains reciprocal tariffs on U.S. vehicle imports to protect domestic auto manufacturers.