CA Gov
The Government of Canada and the Government of Ontario announced investments of $8.7 billion and new measures to strengthen strategic industries, support workers and businesses impacted by U.S. tariffs, and drive long-term economic growth.
Protect Ontario's steel industry
- Joint Steel Action Fund: The Joint Steel Action Fund will leverage and build on existing funding mechanisms such as the Government of Canada's Strategic Response Fund, with five-year funding commitments of $3.55 billion from the federal government and $1.67 billion from Ontario. This will support strategic investments that will help the Canadian industry diversify production, enter new overseas markets and ensure Canadian supply chains have access to the steel needed to support economic growth and nation-building projects.
- Supporting domestic demand: Leveraging the Buy Canadian Policy and the Buy Ontario Policy will allow the prioritization of Canadian steel in public procurement and will strengthen domestic demand. At the federal level, this includes steel used for new federal infrastructure investments, defence-related applications and projects in areas such as advanced manufacturing and energy.
- Protecting against unfair trade and monitoring import pressures: The Government of Canada is strengthening its commitment to protecting Canada's steel industry from unfair trade practices through enhanced monitoring and targeted enforcement activities by the Canada Border Services Agency. The Government of Canada is also maintaining a robust and effective trade remedy system that provides Canadian producers with the tools needed to respond to unfairly traded imports and that helps preserve a fair and open trading environment.
- Canada-Ontario Steel Task Force: A joint federal-provincial task force will provide strategic advice and guidance on the implementation of steel sector measures, including efforts to reduce transportation costs and improve the sector's competitiveness.
Fortify Ontario's automotive industry
- Capital supports: The Government of Canada and the Government of Ontario are investing an additional $2.5 billion over two years in large-scale automotive capital projects (up to $1.5 billion from the federal government and up to $1 billion from the Government of Ontario). This will help automotive companies adapt to changing economic conditions, build a more competitive industry and maintain good jobs across the supply chain, creating a strong foundation for long-term success in manufacturing the connected and electrified vehicles (EVs) of the future.
- This investment builds on existing supports announced in February 2026 through Canada's new auto strategy for manufacturing, notably assembly and parts production, including $3 billion through the Strategic Response Fund and $100 million through the Regional Tariff Response Initiative.
- Emissions standards: The fleet average performance standard in Canada's light-duty vehicle greenhouse gas regulations will be maintained at 2026 levels (172 grams per mile) through 2029. Annual increases will resume in the 2030 model year in line with Canada's new target of 75% EV car sales by 2035 announced in the auto strategy (equivalent to 74 grams per mile). Maintaining the fleet average performance standard will provide manufacturers with near-term flexibility at a time when the industry is facing trade-related pressures. It will also provide the ability to generate greenhouse gas credits for use in later years, while continuing to improve emissions performance and fuel economy over time.
- Canada-Ontario Automotive Task Force: A joint federal-provincial task force will oversee the implementation of auto sector measures to support the competitiveness of the automotive sector.
Build out Ontario's critical mineral supply chain
- Advancing the construction of critical infrastructure: The Government of Canada will advance the construction of essential road infrastructure to support critical mineral development in Northern Ontario's Ring of Fire region, backed by a federal commitment of up to $1 billion over three years. As global demand for clean technologies and EVs continues to grow, securing a reliable supply of responsibly produced critical minerals will help strengthen Canada's economy, attract investment and support good jobs across the economy.
- Coordinated process for provincial and federal permitting: To help streamline approvals and further speed up building, Canada and Ontario will establish a coordinated process for provincial and federal permitting to enhance efficiency, eliminate duplication and respect federal and provincial jurisdictions.
- Priority projects: Canada will work with Ontario to identify priority projects in the Ring of Fire that could benefit from federal funding initiatives, including the Canada Critical Minerals Accelerator, the First and Last Mile Fund, investment tax credits, cost-sharing arrangements, and federal and provincial support measures to get projects moving faster.
- Canada-Ontario working group on Indigenous consultation and engagement: A new federal-provincial working group will be established to support meaningful consultation and engagement with First Nations, working in partnership with Indigenous Peoples to identify economic and community development opportunities. The work of this group will also include studying options for conservation and/or Indigenous protected areas as development in the Ring of Fire region moves forward.
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