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- calendar_today October 21, 2026
Major Investment Unveiled to Fortify Ontario Industries
On October 21, 2026, Premier Doug Ford and Prime Minister Mark Carney jointly announced an ambitious $8.7 billion action plan focused on protecting workers and strengthening Ontario industries. This initiative is designed to shield Canadian workers and businesses from U.S. tariffs, promote economic growth, and secure high-quality jobs for the future.
Targeting Tariff Protection and Economic Stability
With rising global uncertainty and the persistent challenge of U.S. tariffs, both the federal and provincial governments have prioritized supporting their domestic industrial base. The new action plan aims to reinforce Ontario's central role in Canada's industrial economy, which boasts robust automotive and steel sectors and significant critical mineral resources.
Key Measures for the Steel Industry
A central pillar of the plan is the protection of Ontario's steel industry. A new Joint Steel Action Fund will receive $3.55 billion from the federal government and $1.67 billion from Ontario over five years. This fund will help Canadian steel producers diversify production, serve emerging industries—such as defense, advanced manufacturing, and energy—and access new international markets. The action plan also commits to strengthening the Buy Canadian and Buy Ontario policies for procurement, ramping up enforcement against unfair steel dumping and subsidies, and creating a Canada-Ontario Steel Task Force to reduce shipping costs and enhance competitiveness.
Strengthening the Automotive Sector
Ontario’s automotive sector is another focus. An additional $2.5 billion—$1.5 billion from Ottawa and $1 billion from Ontario—will be invested over two years to modernize manufacturing with new technology and production lines capable of building future connected and electric vehicles. The governments are also maintaining greenhouse gas emissions standards for new vehicles through 2029, with further increases from 2030 onward, supporting Canada’s 2035 electric vehicle target. Coordination and support for the industry's transition will be ensured by a new Canada-Ontario Automotive Task Force.
Critical Minerals and Infrastructure Investment
The action plan features substantial infrastructure investment to build out Ontario’s critical minerals supply chain. To unlock mineral development in Northern Ontario’s Ring of Fire region, the federal government will match Ontario’s investment of up to $1 billion over three years for new road infrastructure. Regulatory processes will be streamlined for faster project approvals, and priority projects may benefit from federal funding tools, including the Canada Critical Minerals Accelerator and various cost-sharing measures. Engagement with First Nations will be a priority through a new working group exploring opportunities for economic growth and conservation.
Worker Support and Broader Economic Growth
This extensive partnership between the federal and provincial governments is designed not only to protect key industries, but also to deliver worker support and achieve long-term economic growth. Measures already in place include more than $25 billion in federal support for workers and affected businesses, a further $7.5 billion in new measures, and rapid-response supports for employment transitions.
Quick Facts and Broader Impacts
- Canada’s automotive industry supports over 120,000 jobs and contributes more than $16 billion to annual GDP.
- The steel industry supports 23,000 direct jobs and underpins over 172,000 jobs in fabricated metals.
- Since March 2025, substantial investments have been made to transform Canada’s steel sector, including $1 billion for production and $70 million for worker training.
Federal-Provincial Partnership for Resilience
Premier Ford and Prime Minister Carney emphasized the importance of federal-provincial partnership in addressing global economic uncertainty. By working together, Ontario and Canada are aiming to fortify their economic foundations, diversify trade relationships, and foster a more independent and resilient national economy.
Source: news.ontario.ca.
