Doug Ford, Mark Carney announce $8.7B in support for tariff-affected industries

VIDEO: Ontario Premier Doug Ford and Prime Minister Mark Carney are scheduled to make an announcement in Ottawa at 2 p.m.

Ford and Carney announced new investments Wednesday to support tariff-impacted Ontario industries, totalling $8.7 billion.

The Ontario government will launch an action plan to support the province’s steel and automotive industries, and Ontario’s critical mineral supply chain.

A new Joint Steel Action Fund will be established with five-year funding commitments of $3.55 billion from Canada, and $1.67 billion from Ontario to diversify production, prepare Canadian steel firms to support emerging and growing national industries, and open up new overseas markets for Canadian steel.

It comes with a pledge to increase protections against foreign steel dumping through stronger border enforcement.

“We have the best steel workers in the world, we have vast natural resources, yet we import over 6.5 million tons of steel a year and that’s often because we don’t make the steel that Canadian companies need,” said Carney. “It’s time to be our own best customer, and so today’s investment will enable mills and companies to upgrade machinery and manufacture more products Canada needs.”

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The automotive sector will see $2.5 billion — $1.5 billion from the federal government and $1 billion from Ontario — with the goal to maintain Canada’s greenhouse gas emissions standards for new light-duty vehicles, keeping in line with Canada’s 2035 electric vehicle target in the country’s new Auto Strategy.

Another $1 billion in federal funds spread across three years will be used toward the Ring of Fire mining development in northern Ontario.

“This agreement, we’ll see, Ontario Steel used to build everything from new pipelines,” said Ford. “Pipelines transporting Canadian energy to cutting edge defense technology, and the largest expansion of nuclear energy in our history, which will add 150,000 jobs and $800 billion to our GDP.”

Experts say given the current circumstances with the trade war and the impacts on steel and autos, this funding is crucial.

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“I think it’s fair to say that this was a sector that was hurting before the tariffs, and given the importance of the U.S. market, is making it that much more difficult now,” said Drew Fagan, a professor at the Munk School of Global Affairs. “Essentially what’s happened is the borders become politicized, so the focus on producing more for ourselves in a sector like steel there’s a fair bit of realism about it.”

During the announcement, Carney was asked why the federal government isn’t suing Cleveland-Cliffs, Stelco’s owner.

The prime minister says the government is following a legal process and must take steps in the right order.

As for trade talks with the states, Carney said he spoke with the U.S. president earlier Wednesday morning.

He says he’s ready to sit down and negotiate when the U.S. is ready, but for a deal that’s in the best interest of Canadians.

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