Carney, Ford unveil $9B action plan for Ontario steel, auto and Ring of Fire

Prime Minister Mark Carney and Ontario Premier Doug Ford unveiled a $9-billion joint plan aimed at shoring up key Ontario industries on Wednesday, with Ottawa contributing $8.7 billion alongside provincial spending. The announcement, framed as a response to mounting pressure from the trade war with the United States, directs money toward steel, auto manufacturing and the mineral-rich Ring of Fire region in northern Ontario.

The largest piece is a $5-billion commitment to steel mills that Carney said will protect 100,000 jobs in the sector. Ottawa and Queen's Park are also creating a $5-billion joint steel action fund to help the industry diversify, find overseas markets and strengthen Ontario's industrial base. Carney added that the Canada Border Services Agency will tighten protections against foreign steel dumping, and that a new Canada-Ontario Steel Task Force will advise on cutting shipping costs and interpreting import trends. He noted that steel companies currently lean heavily on auto demand, but said pipes, rail, ports and defence will matter more in the future.

Another $2.5 billion will go toward auto assembly plants in Ontario, including upgrades to machinery and production lines, with the goal of safeguarding 120,000 jobs. For the Ring of Fire, the federal government is putting $1 billion into developing capacity in the mineral-rich region, and Carney said Ottawa is looking to match the province's $1-billion investment in a 500-kilometre highway to reach it. He described the strategy as linking every stage of the value chain, from mine to mill to line.

Carney acknowledged that while an integrated North American auto sector would ultimately be stronger, that is not necessarily the current objective of the U.S. administration. He said Washington's approach has changed and Canada's must as well, while adding that Ottawa remains open to negotiating a trade agreement whenever the U.S. is ready to sit down in good faith.

The plan lands as workers at an Ontario steel plant face imminent layoffs. Stelco said last month that U.S. tariff pressure forced it to consolidate steel production at its Lake Erie Works in Haldimand and halt operations at its Hamilton plant, offering transfers to some employees while leaving many others out of work. Industry Minister Melanie Joly said Friday that a resolution to the standoff between Ottawa and Stelco is a matter of days, saying the government believes the company committed multiple breaches of its commitments under the Investment Canada Act. She said Stelco faces financial penalties and a potential forced divestiture of its Canadian assets.

Separately, Finance Minister Francois-Philippe Champagne said Tuesday that the federal budget will be released on Nov. 5, two days after the U.S. midterm elections. It will be the second budget under Carney, who moved the release schedule from spring to fall. The date was set after the Parliamentary Budget Officer trimmed its growth outlook, now projecting GDP growth of 0.9 per cent this year and 1.5 per cent in 2027, down from 1.1 per cent and 1.6 per cent respectively.