On Wednesday, Prime Minister Mark Carney, together with Ontario Premier Doug Ford, revealed an $8.7 billion support package aimed at the steel, critical mineral, and auto sectors.
Ford mentioned that this federal-provincial agreement “will protect workers in key provincial industries from tariffs and will pave the way for new good-paying jobs” throughout Ontario.
The collaboration with the Ontario government allocates $2.5 billion over two years to assist the province’s auto industry in developing the “connected and electric vehicles of the future.”
Of this funding for autos, Ottawa is contributing $1.5 billion while Ontario covers the remaining $1 billion.
This aid to auto manufacturers comes amid uncertainties stemming from ongoing trade tensions with the United States.
“An integrated North American auto sector will be stronger, more competitive and provide better jobs for our workers,” Carney stated. “But we recognize these are not the objectives of the current U. S. administration. Their approach has changed, and so must ours.”
WATCH | Carney announces plan with Ford:
Carney and Ford announce $9B plan to ‘protect’ Ontario jobs
Standing alongside Premier Doug Ford on Wednesday, Prime Minister Mark Carney emphasized that new investments in Ontario’s Ring of Fire critical minerals projects as well as in steel and automotive sectors will safeguard up to 290,000 jobs across the province.
In August, U. S. President Donald Trump warned he might raise tariffs on all cars, trucks, auto parts, and steel to 50 percent starting January 1st. This warning came after Carney announced his retaliation with matching dollar-for-dollar tariffs on American products.
Currently, finished vehicles and non-CUSMA-compliant auto parts imported into the U. S. are already subject to a 25 percent tariff.
“Ontario and Canada are being challenged right now,” Ford noted. “We see it in every corner of our province where tariffs and trade uncertainty are leaving workers and their families worried.”
Also included in this joint initiative is Ottawa’s decision to relax greenhouse gas regulations due to U. S. tariffs affecting Canada’s automotive sector.
Canada’s emissions standards will remain stable until 2030-keeping 2026 levels for new light-duty vehicles through until model year 2029-with annual increases scheduled to restart in model year 2030.
Initially, Ottawa had proposed tightening emissions standards from 2026 through 2035 aiming for a target of achieving 75 percent EV sales by 2035.
Brian Kingston, president of the Canadian Vehicle Manufacturers’ Association said this pause would provide “some relief” to car manufacturers.
“By pausing regulation and maintaining current levels until 2030 gives companies some flexibility as they deal with a much bigger threat: U. S. tariffs,” Kingston explained.
Meanwhile, Evan Pivnick from Clean Energy Canada mentioned that this change represents a setback regarding government EV sales targets.
Pivnick pointed out that even though Carney recognizes a global shift toward EV adoption, “the policies that are meant to help ensure Canadians are able to access a larger share are just delayed.”
Ottawa’s adjusted emissions standards come following similar changes made by Trump’s administration on Monday.
The U. S. has finalized its rollback on fuel economy standards for new vehicles reversing regulations intended to enhance fuel efficiency while promoting electric vehicle usage.
p>Because of how intertwined Canada’s automotive industry is with that of the U. S., Kingston remarked Canada needs to stay “relatively closely aligned” with its southern neighbor on this issue.
p>“We cannot diverge significantly from United States if we intend to have an industry of size scale we have right now in Canada,” Kingston said. p>The Carney government aims for three out every four new vehicles sold in Canada being electric by year twenty thirty-five.(Doug Ives/ ) p>Industry Minister Mélanie Joly mentioned during her entrance into a caucus meeting Wednesday that government plans include continued support for car manufacturers affected by regulatory reversals from Trump’s administration.
p>“A lot our automakers have been deeply impacted not only by American tariffs but indeed by fact American administration has chosen drastically reduce various protections regarding GHG emissions,” Joly said. p>Carney stated investing cleaner automobile technology becomes imperative “reinforced radical transformation global automobile sector lower emissions greater connectivity advanced manufacturing.”
p>He added investment represents “next major step forward positioning Canada global leader EV production.”Plans for Steel & Critical Minerals
p>The federal-provincial partnership also introduces a Joint Steel Action Fund worth five billion dollars-three point five five billion coming from Ottawa while one point six seven billion sourced from Ontario-spanning over five years.
C ar ney expressed confidence investment allows steel mills upgrade machinery produce more items needed locally expand capacities catering markets outside US.
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