Canada and Ontario commit $8.7 billion to shield steel, auto and minerals sectors from tariffs

What was announced

Prime Minister Mark Carney and Ontario Premier Doug Ford unveiled a coordinated action plan on October 21, 2026, designed to strengthen Ontario's strategic industries and protect workers facing tariff pressures. The plan pools federal and provincial funding to address challenges in steel, automotive manufacturing, and critical minerals—sectors described as essential to Canada's economic resilience and independence.

The announcement reflects a broader federal response: since August 2026, the Government of Canada has provided over $25 billion in total support to tariff-affected workers and businesses, with this Ontario package representing a major new commitment to long-term industrial competitiveness.

Steel industry support

The new Joint Steel Action Fund allocates $3.55 billion from Canada and $1.67 billion from Ontario over five years. The funding is designed to help Canadian steel firms diversify production, support emerging industries such as defence and advanced manufacturing, and access new overseas markets.

Beyond funding, the governments will strengthen enforcement against unfair trade practices through the Canada Border Services Agency and tighter compliance measures. A Canada-Ontario Steel Task Force will coordinate implementation, with an initial focus on reducing steel shipping costs and assessing trade remedy effectiveness.

• Leverage Buy Canadian and Buy Ontario policies in public procurement
• Strengthen protections against foreign steel dumping and unfair subsidies

Automotive and electric vehicle transition

Ontario's automotive sector will receive $2.5 billion in capital investment over two years—$1.5 billion federal and $1 billion provincial. This funding enables manufacturers to upgrade production lines and machinery for connected and electric vehicle manufacturing. The sector currently supports over 120,000 direct jobs and contributes more than $16 billion annually to Canada's GDP.

The governments will also maintain Canada's greenhouse gas emissions standards for new light-duty vehicles at 2026 levels through the 2029 model year, with annual increases resuming in 2030 to align with Canada's 2035 electric vehicle target. A Canada-Ontario Automotive Task Force will coordinate the industry's transition.

Critical minerals and Ring of Fire development

To unlock Northern Ontario's critical mineral supply chain, the Canadian government will match Ontario's investment of up to $1 billion over three years for essential road infrastructure in the Ring of Fire region. A coordinated federal-provincial permitting process will streamline approvals to accelerate project development.

Federal funding sources including the Canada Critical Minerals Accelerator, investment tax credits, and cost-sharing arrangements will be directed toward priority projects. A working group will engage First Nations communities to identify economic and community development opportunities while studying conservation and Indigenous protected area options.

Broader tariff support for businesses

The $8.7 billion Ontario package builds on wider federal tariff response measures announced in August 2026. These include $1.5 billion through the Regional Tariff Response Initiative for small and medium-sized enterprises, a $500 million liquidity stream via the Business Development Bank of Canada's Pivot to Grow program, and $2 billion through the Canada Strong Diversification Fund for capital maintenance projects.

The federal government has also broadened access to tariff-related programs by lowering the minimum revenue requirement to $1 million, making support available to more small businesses. Additional supports include $3.5 billion in Rapid Response Supports for workers, including extended employment insurance flexibilities.