Canada spending $8.7 billion to shield steel and auto sectors from U.S. tariffs
Prime Minister Carney and Premier Ford announced a Joint Steel Action Fund and auto investments Wednesday to protect workers as Trump threatens 50% tariffs on Canadian goods.
Sources · Ontario Newsroom
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Canada and Ontario unveiled an $8.7 billion action plan Wednesday aimed at shielding steelmakers and automakers from threatened U.S. tariffs, with a federal-provincial investment split and new procurement policies to favour domestic steel.
The centerpiece is a five-year Joint Steel Action Fund: $3.55 billion federal, $1.67 billion Ontario. The money will support efforts to diversify steel production, boost defence and advanced manufacturing capabilities, and open overseas markets. The governments will also enforce Buy Canadian and Buy Ontario policies in public procurement to prioritize Canadian steel, and the Canada Border Services Agency will step up enforcement against foreign dumping.
A Canada-Ontario Steel Task Force has been established, with a first priority to identify ways to reduce steel shipping costs. The auto sector receives an additional $2.5 billion over two years in capital projects.
Prime Minister Mark Carney noted in August that U.S. President Donald Trump threatened 50% tariffs on Canadian vehicles, auto parts, and steel—threats that prompted the announcement. "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," Carney said. Premier Doug Ford added: "Working in partnership to protect Canadian workers, Ontario and Canada are fortifying our industrial base and securing the good-paying jobs of the future."
The announcement came as Ontario faces scrutiny over its trade response. The U.S. embassy in Canada released a list of quotes from Canadian politicians, including Industry Minister Melanie Joly, suggesting a federal effort to influence American politics. Ford said Ontario has "no interest in interfering in American elections."
What specific outcomes does the government expect from the $3.55 billion federal steel investment?
Will the $2.5 billion auto investment be enough to offset the threatened 50% tariffs on vehicles and parts?
We'll update this story as answers emerge.
The facts
How much is Canada investing in the Joint Steel Action Fund?
The federal government is contributing $3.55 billion and Ontario is contributing $1.67 billion to the five-year Joint Steel Action Fund.
What tariff rate did Trump threaten on Canadian steel and autos?
U.S. President Donald Trump threatened 50% tariffs on Canadian vehicles, auto parts, and steel.
How much additional funding is the auto sector receiving?
The auto sector is receiving $2.5 billion over two years in capital projects.
What new policies will Canada use to support domestic steel?
Canada will enforce Buy Canadian and Buy Ontario policies in public procurement to prioritize Canadian steel, and the Canada Border Services Agency will increase enforcement against foreign dumping.
