Canada and Ontario announce $8.7B tariff-response package, including up to $1B for Ring of Fire roads
The federal and Ontario governments announced an $8.7 billion package in Ottawa on Oct. 21 that they say is intended to support workers and businesses affected by U.S. tariffs, with measures focused on steel, automotive manufacturing and critical minerals. The plan includes a federal commitment of up to $1 billion over three years for essential road infrastructure linked to the Ring of Fire in Northern Ontario.
For communities in the Northeast and Far North, the Ring of Fire items are the most locally relevant parts of the announcement, outlining proposed road construction, permitting changes and new joint working groups tied to potential development in the region.
On critical minerals, the federal government said it will advance construction of essential road infrastructure to support critical mineral development in the Ring of Fire, backed by the up-to-$1 billion commitment over three years.
The two governments said they will establish a coordinated process for provincial and federal permitting for projects in the Ring of Fire.
The backgrounder says Canada will work with Ontario to identify priority Ring of Fire projects that could receive support through federal initiatives, including the Canada Critical Minerals Accelerator and the First and Last Mile Fund, as well as investment tax credits, cost-sharing arrangements, and other federal and provincial measures.
Canada and Ontario also said they will create a federal–provincial working group on Indigenous consultation and engagement related to Ring of Fire development.
For the steel sector, the plan includes a Joint Steel Action Fund with five-year funding commitments of $3.55 billion from the federal government and $1.67 billion from Ontario.
According to the backgrounder, the fund is aimed at projects such as production diversification, expanding into overseas markets, and ensuring Canadian supply chains can access steel.
The governments said Buy Canadian and Buy Ontario procurement policies would be used to prioritize Canadian steel in public procurement. At the federal level, the backgrounder lists steel used for new federal infrastructure investments, defence-related applications, and projects in areas such as advanced manufacturing and energy.
The package includes enhanced monitoring and targeted enforcement of steel imports by the Canada Border Services Agency, which the governments linked to what they described as “unfair trade practices.” The federal government said it will maintain its trade remedy system, describing it as a way for producers to respond to unfairly traded imports.
The backgrounder also says a Canada–Ontario Steel Task Force will provide advice on implementing steel measures, including efforts to reduce transportation costs.
In the automotive sector, the governments said they will invest an additional $2.5 billion over two years in large-scale automotive capital projects. The backgrounder says the funding includes up to $1.5 billion from the federal government and up to $1 billion from Ontario.
The announcement follows supports announced in February 2026 under Canada’s auto strategy, including $3 billion through the Strategic Response Fund and $100 million through the Regional Tariff Response Initiative.
According to the backgrounder, 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, with annual increases resuming for the 2030 model year.
The governments also said a Canada–Ontario Automotive Task Force will oversee implementation of the automotive measures.