Canada and Ontario announce $5.2 billion steel industry support package

The Canadian federal government and the province of Ontario have announced a joint industrial support programme aimed at strengthening domestic steel production, protecting manufacturers from US tariffs and expanding export opportunities.

The agreement, unveiled by Prime Minister Mark Carney and Ontario Premier Doug Ford on October 21, 2026, includes C$8.7 billion in investments and support measures for the steel, automotive and critical minerals sectors.

Steel industry to receive C$5.22 billion

A central element is the creation of a Joint Steel Action Fund, with C$3.55 billion committed by the federal government and C$1.67 billion by Ontario over five years.

The fund will support steelmakers in diversifying production, developing new export markets and increasing their ability to supply growing industries, including defence, advanced manufacturing, energy and infrastructure.

The governments also intend to strengthen domestic steel demand through their Buy Canadian and Buy Ontario procurement policies, prioritising locally produced steel in public projects.

Additional measures include tighter enforcement against dumped and unfairly subsidised steel imports.

A new Canada-Ontario Steel Task Force will examine industry competitiveness, initially focusing on reducing steel transportation costs and assessing import trends and existing trade protection measures.

Automotive manufacturing receives additional investment

The agreement also provides C$2.5 billion over two years to modernise automotive manufacturing facilities, including investments in machinery and production lines for connected and electric vehicles.

The federal government will contribute C$1.5 billion, with Ontario providing the remaining C$1 billion.

Canada will maintain its greenhouse gas emissions standards for new light-duty vehicles at 2026 levels through the 2029 model year, with annual increases resuming in 2030.

Critical minerals development to support industrial supply chains

Canada and Ontario will also advance infrastructure development in Northern Ontario's Ring of Fire mineral region. The federal government plans to match provincial road infrastructure investments of up to C$1 billion over three years.

The governments intend to coordinate permitting procedures and identify priority mining and processing projects eligible for financial support.

The initiative forms part of Canada's wider response to US trade restrictions and efforts to strengthen domestic industrial supply chains.

Canada's steel industry supports more than 23,000 direct jobs, while the automotive sector employs over 120,000 people. The new measures are intended to support investment, reduce dependence on export markets and improve the competitiveness of Canadian manufacturing.

Source and Photo: Prime Minister of Canada