Canada, Ontario announce $8.7B package to protect steel, auto sectors from US tariffs

By Merve Aydogan

HAMILTON, Canada (AA) - The governments of Canada and Ontario on Wednesday announced $8.7 billion in new investments to strengthen strategic industries and support workers and businesses affected by US tariffs, said Prime Minister Mark Carney.

Speaking at a news conference in Ottawa with Ontario Premier Doug Ford, Carney said the plan aims to protect jobs and build a more independent economy.

"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," he said.

"Today’s action plan is cooperative federalism in action. Canada is strong. Canada is united. Canada is working," Carney added.

The Prime Minister’s Office said the plan includes a new Joint Steel Action Fund, with five-year commitments of $3.55 billion from Canada and $1.67 billion from Ontario to diversify production and open new overseas markets for Canadian steel.

It also provides an additional $2.5 billion over two years for automotive capital projects, with $1.5 billion from the federal government and $1 billion from Ontario, it said.

Ottawa will also match Ontario's initial investment of up to $1 billion over three years in road infrastructure for the Ring of Fire critical minerals region in northern Ontario, it added.

Asked whether the governments' actions or comments were an attempt to influence American voters, after the US Embassy circulated a fact sheet on remarks by Canadian politicians before the American midterm election on Nov. 3, Carney responded "No," and stressed that the US started the trade dispute.

"The United States initiated these trade actions. We have responded to those to protect Canadian jobs, protect Canadian companies, and to develop our economy," he said.

He said Canada is growing jobs at twice the rate of the US and attracting foreign direct investment at twice the US rate.

"Yes, we have big structural challenges, some in the steel industry, some in the auto sector, and we’re addressing those together as partners," he added.

Carney said he spoke to US President Donald Trump earlier in the day "for quite some time."

"We’re ready to sit down and negotiate when the US is, but a deal that’s in the interests of Canadians," he said.

He said steel and autos are among the most important sectors that would have to be part of any deal, and that the two leaders also discussed Iran, Ukraine, the Middle East and trade.

Ford rejected any suggestion of interference in US politics.

"I have no interest at all interfering in American elections. I spent 20 years of my life down in the US. I love the American people," he said.

"They want certainty, they want stability, and we’re going to focus on what we can do here in Ontario and in Canada to make sure we protect our economy, protect the people, and protect communities," Ford added.

"The people of the United States will make that determination in the midterms," he said.

Merve Gül Aydoğan Ağlarcı