Carney announces $6.4 billion plan for Ontario steel and autos

Prime Minister Mark Carney unveiled a C$9 billion ($6.4 billion) partnership with Ontario to support the province’s tariff-battered steel and auto industries, along with new funding for mining-related infrastructure in the Ring of Fire region.

Carney said the government will also hold off on increases to federal emissions standards for vehicles, keeping them at 2026 levels through to the year 2029, with the goal of giving automakers more flexibility in the short term.

The prime minister announced the measures Wednesday in Ottawa, speaking alongside Ontario Premier Doug Ford.

“US tariffs have upended a trade bargain that has existed for decades,” Carney said, referring to the 50% duties US President Donald Trump imposed on foreign steel last year. “They’ve raised costs for American families, while putting Ontario workers and businesses at a disadvantage and under a cloud of uncertainty.”

The new measures come as Carney’s government threatens to take legal action against US-based steel firm Cleveland-Cliffs Inc. over its plan to lay off hundreds of workers at its Stelco operation in Hamilton, Ontario.

Industry Minister Melanie Joly has said the government is looking at all options, including potentially forcing Cleveland-Cliffs to sell its Canadian assets. 

Wednesday’s support package for the steel sector includes a joint C$5 billion fund over five years, with about a third of the money coming from the Ontario government, according to a government release. At least some of the money comes from funding previously earmarked for industry support.

“Today’s investment will enable mills and companies to upgrade machinery and manufacture more products Canada needs to expand to meet demand in non-US markets,” Carney said.

The federal government will also take stronger action against foreign steel dumping through “enhanced monitoring and targeted enforcement activities,” the government release said, but did not provide further details.

For the auto sector, the federal and Ontario governments will provide an additional C$2.5 billion over two years for “large-scale automotive capital projects,” the government release said, with the goal of helping firms manufacture electric vehicles and maintain international competitiveness.

Carney said that since Trump imposed tariffs on Canadian-made autos, sparking retaliatory tariffs from Canada, both countries have seen declines in their auto exports to each other’s jurisdictions.

“Nobody wins from this,” Carney said. “Tariffs make both our industries weaker and reduce choice for our families. That’s why Canada remains ready to negotiate a fair deal when the US is ready to sit down in good faith.”

Meanwhile, the Canadian government will also provide up to C$1 billion over three years for building road infrastructure in Ontario’s Ring of Fire region, matching previously announced funding from the provincial government.

“We can secure a sovereign supply chain and bolster Canada’s position as a critical minerals leader,” Carney said about developing the region. 

(By Brian Platt)