Carney, Ford unveil $8.7B plan for Ontario steel, autos

Prime Minister Mark Carney and Ontario Premier Doug Ford on Wednesday announced a joint package worth nearly C$9 billion ($6.4 billion) for the province's steel and auto industries, which have been hit by U.S. tariffs. The plan also pays for roads into the mineral-rich Ring of Fire region, according to Reuters. The Prime Minister's Office put the exact total at C$8.7 billion. Carney said the measures would protect about 220,000 jobs in steel and autos and help create 70,000 jobs tied to the Ring of Fire.ca.finance.yahoo.com+2

What the package includes

The largest piece is a new Joint Steel Action Fund. Ottawa is putting in C$3.55 billion and Ontario C$1.67 billion, both over five years, to help steelmakers diversify production and find markets overseas. Carney said the money "will enable mills and companies to upgrade machinery and manufacture more products Canada needs". The governments also promised Buy Canadian procurement rules and tougher action against foreign steel dumping.mining.com+1

Automakers will get C$2.5 billion over two years for capital projects to build connected and electric vehicles. Ottawa is providing C$1.5 billion of that and Ontario C$1 billion. Ottawa will also keep vehicle emissions standards at 2026 levels through the 2029 model year. In the Ring of Fire, the federal government will match Ontario's road funding of up to C$1 billion over three years. According to Canada's National Observer, this is Ottawa's first direct investment in the project, which some First Nations oppose.pm.gc.ca+2

Markets and trade backdrop

The S&P/TSX Composite Index closed at a four-week high, led by financial stocks, as investors welcomed the measures. Toronto-Dominion Bank shares rose, while Magna International fell after analysts cut their price targets on the stock, Reuters reported. "The banks are going to be huge beneficiaries," said Lorne Steinberg of Lorne Steinberg Wealth Management.marketscreener.com

The package comes as Ottawa threatens legal action against Cleveland-Cliffs over planned layoffs at its Stelco operation in Hamilton. Carney said Canada's auto exports to the U.S. have fallen by more than 10%, while U.S. exports to Canada have dropped by more than 20%. He said he had spoken with President Donald Trump on Wednesday morning and remained willing to negotiate.nationalobserver.com+2

"Nobody wins from this," Carney said. "That's why Canada remains ready to negotiate a fair deal when the US is ready to sit down in good faith".mining.com