Canada launches $6.2 billion aid package for steel and auto sectors amid U.S. tariffs
Canada announced a $6.2 billion program to support its steel and automobile industries after U.S. tariffs were imposed, with federal and provincial funds allocated over five years.
Canada unveiled a $6.2 billion (€5.7 billion) assistance plan aimed at shielding its steel and automotive sectors from recently imposed U.S. tariffs. Prime Minister Mark Carney and Ontario Premier Doug Ford presented the package on Wednesday, allocating $3.7 billion (€3.4 billion) to steel producers and $1.8 billion (€1.65 billion) to automakers, of which $1.1 billion (€1 billion) will come from the federal government.
The announcement coincided with Cleveland-Cliffs confirming layoffs at its Hamilton, Ontario plant, highlighting the immediate impact of the trade dispute on workers. > "US tariffs have upended a trade bargain that’s existed for decades," Carney said, adding that the measures have raised costs for American families and disadvantaged Ontario businesses.
Canadian auto exports to the United States have slipped by more than 10 percent, while U.S. exports to Canada have fallen over 20 percent, a decline Carney said harms both sides of the border. > "Tariffs make both our industries weaker and reduce choice for our families," he emphasized.
Carney confirmed a lengthy conversation with President Trump on trade, Iran and the Middle East, noting that no breakthrough was reached but Canada remains prepared to negotiate. The talks had stalled after Trump imposed 50 percent tariffs on roughly $20 billion in Canadian goods in August, prompting Canadian retaliation.
Premier Ford warned that the dispute will have lasting effects on bilateral relations, stating, "No matter what happens in the midterms, no matter who sits in the White House, we’re not going back to the way things were."
The U.S. Embassy later accused Canadian officials of attempting to influence the upcoming American midterm elections, naming Industry Minister Mélanie Joly and Premier Ford. Both officials denied the claims, and political science professor Daniel Béland described the allegation as "absurd."
Canada’s strategy includes a goal to double non-U.S. exports within a decade, reflecting a shift away from reliance on an integrated North American auto market.