The federal and Ontario governments have introduced a new strategy to tackle tariffs imposed by the U. S. administration.
Prime Minister Mark Carney and Premier Doug Ford gathered in Ottawa on Wednesday afternoon to unveil an $8.7-billion partnership aimed at supporting the steel and automotive industries affected by tariffs.
This combined investment includes $2.5 billion to assist current auto industry employees in Ontario, particularly those in southwestern Ontario. It will help modernize assembly lines and aid in acquiring advanced 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 emphasized that tariffs have had a detrimental impact on both countries’ economies since they were introduced by the Trump administration in early 2025, and their effects are now becoming apparent.
“Canada’s auto exports to the U. S. have declined by more than ten percent,” said Carney. “U. S. exports to Canada have fallen by over 20 percent, even though Canada remains, by far, the United States’ largest customer. Nobody wins from this. Tariffs weaken both our industries and limit choices for our families.”
The steel industry will receive just over half of this joint investment. Ford stated that this sector has faced significant challenges.
“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 for building roads and highways in the province’s “Ring of Fire” region, which Carney mentioned would create 70,000 jobs. Ford noted that work on those roads began this summer.
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