Ontario Construction News staff writer
The federal and Ontario governments have announced $8.7 billion in investments and new measures to protect jobs, support industries affected by U.S. tariffs and strengthen the province’s steel, automotive and critical minerals sectors.
Prime Minister Mark Carney and Premier Doug Ford announced the action plan, which includes $5.22 billion for the steel industry, $2.5 billion for automotive manufacturing and up to $2 billion in combined provincial and federal funding for road infrastructure in Northern Ontario’s Ring of Fire region.
“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,” Carney said in a statement. “Today’s action plan is cooperative federalism in action. Canada is strong. Canada is united. Canada is working.”
The governments will establish a five-year, $5.22-billion Joint Steel Action Fund, with $3.55 billion from Ottawa and $1.67 billion from Ontario, to diversify production, help Canadian steelmakers supply growing industries and expand overseas markets.
The funding will help steel producers serve sectors such as defence, advanced manufacturing, energy and trade infrastructure.
The governments will also use the federal Buy Canadian Policy and Ontario’s Buy Ontario Policy to prioritize Canadian steel in public procurement and strengthen domestic demand.
They will tighten protections against foreign steel dumping and unfair subsidies through enhanced Canada Border Services Agency enforcement and stricter trade remedy and compliance measures.
A Canada-Ontario Steel Task Force will advise on measures to improve the sector’s competitiveness, with an initial focus on reducing shipping costs and reviewing trade measures and import trends.
The automotive sector will receive $2.5 billion over two years for capital projects, including $1.5 billion from Ottawa and $1 billion from Ontario. The funding will help manufacturers upgrade machinery and production lines to build connected and electric vehicles.
The governments will establish a Canada-Ontario Automotive Task Force to co-ordinate support for the industry’s transition.
Ottawa will maintain greenhouse gas emissions standards for new light-duty vehicles at 2026 levels through the 2029 model year, with annual increases resuming in 2030, in line with Canada’s 2035 electric vehicle target.
The action plan also targets critical mineral development in Northern Ontario’s Ring of Fire region.
The federal government will match Ontario’s initial investment of up to $1 billion over three years for essential road infrastructure to support development in the region.
The governments will co-ordinate provincial and federal permitting to streamline approvals and identify priority projects that could qualify for federal funding programs, investment tax credits, cost-sharing arrangements and other support.
A working group will engage First Nations on economic and community development opportunities, while examining options for conservation and Indigenous protected areas as development proceeds.
The governments say the measures will help businesses respond to U.S. tariffs, attract investment, protect workers and strengthen Ontario’s industrial competitiveness.
