Standing with Ontario Premier Doug Ford in Ottawa on Wednesday, Prime Minister Mark Carney detailed a C$9 billion package, described as $6.4 billion in US terms, aimed at steel, autos, and the mining corridor known as the Ring of Fire. He also said the federal government will keep vehicle emissions requirements where they are for model year 2026 through 2029 to give carmakers more flexibility for now.
"US tariffs have upended a trade bargain that has existed for decades," Carney said, pointing to the 50 percent duties US President Donald Trump levied on imported steel last year. "They've raised costs for American families, while putting Ontario workers and businesses at a disadvantage and under a cloud of uncertainty."
Steel gets a joint C$5 billion pool spread across five years, with the province contributing about one third, and some of the cash coming from earlier industry support allocations. Carney said the investment will help mills and manufacturers modernize equipment and make more products to meet demand outside the US.
Ottawa also plans tougher action against unfairly priced foreign steel through "enhanced monitoring and targeted enforcement activities," though it did not release specifics. At the same time, the federal government is weighing legal steps against Cleveland-Cliffs Inc. over its plan to cut hundreds of jobs at the Stelco site in Hamilton, Ontario, and Industry Minister Melanie Joly said all options are on the table, including potentially compelling Cleveland-Cliffs to divest its Canadian assets.
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For autos, the federal and Ontario governments will add C$2.5 billion over two years for "large-scale automotive capital projects" to support electric vehicle manufacturing and keep the sector competitive globally. And in the Ring of Fire, Ottawa will commit as much as C$1 billion across three years for road building, matching previously announced provincial funding. "We can secure a sovereign supply chain and bolster Canada's position as a critical minerals leader," Carney said of developing the region.
Carney said that after Trump imposed tariffs on Canadian-made autos, and Canada responded with its own measures, both countries have seen their auto exports to the other side fall. "Nobody wins from this," he said.
This is targeted fiscal support for heavy industry and EV supply chains, paired with a regulatory pause that lowers near term compliance costs for carmakers. The Ring of Fire road spend is a long dated catalyst, but it signals ongoing public backing for critical minerals projects that feed batteries and electrification.
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