Canada and Ontario laid out a C$8.7 billion response to U.S. tariffs Oct. 21, channeling support toward steel, auto and critical-mineral production, plus roads in northern Ontario.
Prime Minister Mark Carney and Ontario Premier Doug Ford said the measures are intended to support workers and businesses. The federal government values the package at C$8.7 billion. Its five-year Joint Steel Action Fund is set to draw C$3.55 billion from federal coffers alongside C$1.67 billion from Ontario, for C$5.22 billion in total.
Steel measures include applying Buy Canadian and Buy Ontario policies in public procurement and strengthening enforcement against foreign steel dumping. A joint task force will look for ways to reduce steel freight costs. Federal figures say the automotive sector supports more than 120,000 direct jobs and contributes over C$16 billion a year to gross domestic product, while steel supports more than 23,000 direct jobs.
For automakers, the governments plan C$2.5 billion in capital projects over two years, with C$1.5 billion from Ottawa and C$1 billion from Ontario. The funds are intended for machinery and production-line upgrades for connected and electric vehicles. Canada will keep greenhouse-gas emissions standards for new light-duty vehicles at 2026 levels through model year 2029; annual increases are due to resume for model year 2030.
Federal support for the Ring of Fire road plan could reach C$1 billion over three years, matching Ontario’s initial road spending. The governments also plan to coordinate permitting and have a working group consider First Nations engagement, opportunities for nearby communities and conservation options. The announcement does not give payment amounts for individual workers or set out eligibility criteria.
An April 2, 2026, U.S. presidential proclamation set a 50% duty on covered steel, aluminum and copper products. On Oct. 19, Cleveland-Cliffs, Stelco’s parent, said it would indefinitely idle galvanizing lines at the steelmaker. The company said workers affected by the move are expected back as conditions improve and that it expects to maintain total production tonnage and preserve about 2,000 Canadian jobs.
Canada’s Budget 2026 is scheduled for release Nov. 5.
