Carney and Ford announce billions for Ontario steel, auto and Ring of Fire
The federal and Ontario governments are pledging billions to counter U.S. tariffs and build a road to the Ring of Fire minerals region.
OTTAWA — Prime Minister Mark Carney and Ontario Premier Doug Ford announced an $8.7-billion support package for steel, critical mineral and auto sectors on Wednesday.
Ford said the federal-provincial agreement "will protect workers in key provincial industries from tariffs and will pave the way for new good-paying jobs" across Ontario.
In prepared remarks, Carney said U.S. tariffs have put Ontario workers and businesses "at a disadvantage and under a cloud of uncertainty."
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"Protecting what we have is not enough. We must go further. To transform our economy. To secure our future," he said.
The partnership launches a $5-billion Joint Steel Action Fund, with $3.55 billion from Ottawa and $1.67 billion from Ontario over five years.
Carney said the investment will allow steel mills to upgrade machinery, manufacture more products Canada needs and expand to meet demand from markets other than the U.S.
It also earmarks $2.5 billion over two years for the province's auto industry, with Ottawa providing $1.5 billion and Ontario providing the remaining $1 billion.
"An integrated North American auto sector will be stronger, more competitive and provide better jobs for our workers," Carney said. "But we recognize these are not the objectives of the current U.S. administration. Their approach has changed, and so must ours."
As a result of the tariffs, Carney said Canada's auto exports to the U.S. have declined by more than 10 per cent, while U.S. exports to Canada have fallen by more than 20 per cent.
"Nobody wins from this. Tariffs make both our industries weaker and reduce choice for families. That's why Canada remains ready to negotiate a fair deal when the U.S. is ready to sit down in good faith," Carney said.
Easing emissions standards
Also in the joint package, Ottawa is easing greenhouse gas regulations as U.S. tariffs pressure Canada's automotive sector.
Canada's emissions standards are now set to flatline until 2030, maintaining 2026 levels for new light-duty vehicles through the 2029 model year.
This change comes after the Trump administration finalized rolling back fuel economy standards for new vehicles on Monday.
Industry Minister Mélanie Joly said the government wants to continue to provide support to auto companies impacted by the Trump administration's reversal in regulations.
"A lot of our auto producers have been deeply impacted, not only by the American tariffs but indeed by the fact that the American administration has decided to reduce massively its different protection regarding GHG emissions," Joly said.
Carney said Canada's imperative to invest in cleaner auto technologies is "reinforced by the radical transformation of the global auto sector" toward lower emissions.
Ottawa is also committing up to $1 billion over three years to match Ontario's investment toward building road infrastructure to reach the Ring of Fire critical minerals region in the far north of Ontario.
Ford has called mining critical minerals in this area an "ace in the hole" that could help give Canada leverage against American tariffs.
Located about 550 kilometres north of Thunder Bay, the Ring of Fire has long been promoted by Ontario as holding vast quantities of critical mineral riches including nickel and chromite.
Carney said Ottawa and Ontario are creating a co-ordinated process for federal and provincial permitting to open mines, a process he said has historically taken over 15 years in Ontario.
Since 2019, Webequie First Nation and Marten Falls First Nation have been leading federal environmental assessments into various sections of the road.
Earlier this year, Ford predicted that roads into the region should be completed by 2031, which would pave the way for mining to start.
With files from The Globe and Mail and CBC News