Carney and Ford Unveil $8.7 Billion Plan to Shield Ontario Steel and Auto From US Tariffs

Prime Minister Mark Carney and Ontario Premier Doug Ford announced $8.7 billion in joint support on Parliament Hill on Wednesday, Oct 21, 2026, for Ontario industries battered by US tariffs. It is the largest single federal and provincial package yet in a trade war that has run for more than a year and a half, and it arrives two weeks before the federal budget.

The money flows to three sectors: steel, auto manufacturing and critical minerals. The two governments say the measures could protect up to 290,000 jobs across Ontario.

Steel takes the largest share

A new Joint Steel Action Fund will hold $5.22 billion over five years, with $3.55 billion from Ottawa and $1.67 billion from Ontario. The fund is meant to help mills diversify what they produce, supply growing Canadian industries such as defence, advanced manufacturing and energy, and open overseas markets for Canadian steel. A Canada-Ontario Steel Task Force will advise on strategy, and the Canada Border Services Agency gets a stronger hand against foreign steel dumping and unfair subsidies. Both governments will also use Buy Canadian and Buy Ontario rules to put domestic steel first in public projects.

"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.

Auto plants get $2.5 billion

The auto sector receives $2.5 billion over two years, $1.5 billion from Ottawa and $1 billion from Ontario, for capital projects such as modern machinery and upgraded production lines to build connected and electric vehicles. A Canada-Ontario Automotive Task Force will coordinate the work. The sector supports more than 120,000 direct jobs and contributes more than $16 billion a year to Canada's economy. CBC reported the package also keeps vehicle emissions standards at 2026 levels until 2030.

Roads to the Ring of Fire

Ottawa will match Ontario's initial investment of up to $1 billion over three years to build roads into the Ring of Fire, the critical minerals region of Northern Ontario. Ontario estimates that developing the region could generate $22 billion in economic benefits and create up to 70,000 jobs. Terry Sheehan, the MP for Sault Ste. Marie, home to Algoma Steel, said his city sits at "ground zero in this trade war" and that the announcement gives it more ammunition to punch back.

Hours after a call with Trump

Carney said he spoke with US President Donald Trump on Wednesday morning "for quite some time" and that they addressed some of the issues around trade. Negotiations on a new trade deal collapsed in August, and Washington then imposed 50 percent tariffs on about $20 billion in Canadian goods. "US tariffs have upended a trade bargain that's existed for decades," Carney said, adding that they have raised costs for American families. The announcement came a day after US Ambassador Pete Hoekstra said the two countries are not in a trade war, and as the US Embassy accused Canadian politicians of trying to influence the American midterm elections, a claim both leaders rejected. Ottawa has already provided more than $25 billion in support to workers and businesses hit by US tariffs, with a further $7.5 billion in measures announced in August 2026.