'Today's action plan is cooperative federalism in action,' says prime minister
Prime Minister Mark Carney and Ontario Premier Doug Ford on Wednesday announced $8.7 billion in investments and new measures aimed at supporting Ontario workers and businesses affected by U.S. tariffs and strengthening the province's steel, automotive and critical minerals industries.
The Prime Minister's Office described the plan as an example of "cooperative federalism in action," saying the two governments are working together to protect jobs, attract investment and keep Ontario's industries competitive as U.S. tariffs and global uncertainty weigh on the economy.
The plan is organized around three sectors: steel, autos and critical minerals 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 the release. "Today's action plan is cooperative federalism in action. Canada is strong. Canada is united. Canada is working."
Ford said the agreement is "the next step in our ongoing partnership to provide tariff-impacted workers the certainty and stability they deserve while unlocking Ontario's vast supply of critical minerals and building a more competitive and resilient economy that can stand up to anything that comes our way."
New joint fund for steel
The centrepiece of the steel measures is a new Joint Steel Action Fund, backed by five-year funding commitments of $3.55 billion from Ottawa and $1.67 billion from Ontario.
According to the news release, the fund is meant to help steelmakers diversify production, prepare to supply growing Canadian industries such as defence, advanced manufacturing, energy and trade infrastructure, and open new overseas markets. A federal backgrounder issued by Innovation, Science and Economic Development Canada (ISED) says the fund will build on existing funding mechanisms, including the federal Strategic Response Fund.
The two governments also say they will use the Buy Canadian Policy and the Buy Ontario Policy to prioritize Canadian steel in public procurement. At the federal level, the backgrounder says, that includes steel used in new federal infrastructure, defence-related applications and projects in areas such as advanced manufacturing and energy.
A dispute over the future of up to 500 Stelco jobs has escalated into a public confrontation between the federal government and the steelmaker's U.S. parent, Cleveland-Cliffs, with Carney threatening legal action and the company's chief executive saying federal money could not have prevented the cuts.
Ottawa is also promising stronger protections against foreign steel dumping and unfair subsidies, through enhanced monitoring and enforcement by the Canada Border Services Agency and what the release calls tighter trade remedy practices and compliance measures.
A new Canada–Ontario Steel Task Force will advise on carrying out the measures. The release says its first priority will be finding ways to reduce steel shipping costs, and that it will recommend new measures as needed, including on the effectiveness of trade measures and recent import trends.
According to the release, Canada's steel industry supports more than 23,000 direct jobs and is integral to 172,000 jobs in fabricated metals. Since March 2025, the federal government says it has announced $1 billion to support investments in domestic steel production, $150 million through the Regional Tariff Response Initiative (RTRI) and $70 million for worker training and income supports, along with tariff-rate quotas on steel imports from both free-trade and non-free-trade partners.
More capital for automakers and pause on emissions targets
For the auto sector, the two governments are committing an additional $2.5 billion over two years to large-scale capital projects, with $1.5 billion from Ottawa and $1 billion from Ontario. The release says the money is intended to help manufacturers invest in modern machinery and upgraded production lines to build connected and electric vehicles. The backgrounder describes both contributions as "up to" those amounts.
The new funding builds on the federal auto strategy launched in February 2026, which allocated $3 billion from the Strategic Response Fund and up to $100 million from the RTRI, and committed to maintaining counter-tariffs on U.S. auto imports, according to the release.
The plan also holds Canada's greenhouse gas emissions standards for new light-duty vehicles at 2026 levels through the 2029 model year. The backgrounder puts the current fleet average performance standard at 172 grams per mile. Annual increases are set to resume with the 2030 model year, in line with the target of 75% electric vehicle car sales by 2035 set out in the auto strategy, which the backgrounder says is equivalent to 74 grams per mile.
The backgrounder says keeping the standard flat will give manufacturers near-term flexibility while the industry faces trade-related pressures, and will allow them to generate greenhouse gas credits for use in later years.
A Canada–Ontario Automotive Task Force will oversee implementation of the auto measures. The release says the sector supports more than 120,000 direct jobs and contributes more than $16 billion a year to Canada's GDP.
Up to $1 billion for Ring of Fire roads
In Northern Ontario, the federal government is committing up to $1 billion over three years to advance road infrastructure supporting critical mineral development in the Ring of Fire. The release says this federal money matches the Ontario government's initial investment of up to $1 billion over the same period.
The two governments will also set up a coordinated provincial and federal permitting process, which the backgrounder says is meant to improve efficiency, eliminate duplication and respect each government's jurisdiction.
Ottawa will work with Ontario to identify priority projects in the region that could qualify for federal programs, including the Canada Critical Minerals Accelerator, the First and Last Mile Fund, investment tax credits and cost-sharing arrangements.
A new federal-provincial working group will support consultation and engagement with First Nations and identify economic and community development opportunities. According to both documents, the group will also study options for conservation and/or Indigenous protected areas as development in the region moves forward.
Earlier tariff supports
The federal government says it has provided more than $25 billion in support to workers and businesses affected by U.S. tariffs. In August 2026, it announced a further $7.5 billion in new and enhanced measures, according to the release.
That package included $1.5 billion through the RTRI for small and medium-sized enterprises, a $500-million liquidity stream under the Business Development Bank of Canada's Pivot to Grow program, $2 billion through the new Canada Strong Diversification Fund and $3.5 billion in Rapid Response Supports, including extended employment insurance flexibilities. It also lowered the minimum revenue requirement for the BDC's tariff-related programs to $1 million.
