Ottawa and Ontario put $8.7 billion behind steel, autos and critical minerals as exports slide
Canadian auto exports to the US have fallen more than 10 percent, while US exports to Canada have dropped more than 20 percent.
AP News reported that Prime Minister Mark Carney cited those figures on Wednesday while announcing an $8.7bn federal-provincial package for Ontario’s steel, automotive, and critical mineral sectors alongside Premier Doug Ford.
According to the Prime Minister of Canada’s Office, Canada’s automotive sector supports over 120,000 direct jobs and contributes over $16bn annually to GDP.
The steel industry supports over 23,000 direct jobs and is integral to 172,000 jobs in fabricated metals.
A new Joint Steel Action Fund carries five-year commitments of $3.55bn from Ottawa and $1.67bn from Ontario, intended to diversify production, prepare Canadian steel firms to supply defence, advanced manufacturing, energy and trade infrastructure, and open overseas markets.
CBC News described it as a $5bn fund.
Ontario’s auto industry receives $2.5bn over two years for capital projects, split $1.5bn federal and $1bn provincial.
Ottawa is matching Ontario’s commitment of up to $1bn over three years for road infrastructure into the Ring of Fire region in Northern Ontario, where Carney said opening a mine has historically taken over 15 years, CBC News reported.
The federal government has provided over $25bn in support to workers and businesses affected by US tariffs and announced a further $7.5bn in August 2026.
That tranche includes $1.5bn through the Regional Tariff Response Initiative, $2bn through the Canada Strong Diversification Fund and $3.5bn in Rapid Response Supports.
Greenhouse gas emissions standards for new light-duty vehicles hold at 2026 levels through the 2029 model year, with annual increases resuming in 2030.
CBC News reported that Ottawa had initially proposed increases from 2026 through 2035 to reach a goal of 75 percent EV sales by 2035.
“By pausing the regulation and flatlining to 2030, it gives companies some flexibility as they deal with a much more significant threat, which is of course US tariffs,” Brian Kingston, president of the Canadian Vehicle Manufacturers’ Association, told CBC News.
Evan Pivnick, associate director of public affairs at Clean Energy Canada, told the same outlet the change is a setback for the government’s EV targets, saying “the policies that are meant to help ensure Canadians are able to access a larger share are just delayed.”
The US finalized a rollback of its own fuel economy standards on Monday, CBC News reported.
“We cannot diverge significantly from the United States if we intend to have an industry of the size and scale we have right now in Canada,” Kingston said.
Trade negotiations collapsed in August after the two countries appeared close to a deal, AP News reported, and Trump subsequently imposed 50 percent tariffs on about US$20bn in Canadian goods, prompting Canadian retaliation.
According to CBC News, the US applies 25 percent levies to finished vehicles and non-CUSMA-compliant auto parts, and Trump threatened in August to raise tariffs on all cars, trucks, auto parts and steel to 50 percent on January 1.
“An integrated North American auto sector will be stronger, more competitive and provide better jobs for our workers,” Carney said, per CBC News.
The outlet reported that Carney does not see those objectives in the current US administration, and that he is shifting Canada’s approach in response.
