Canada and Ontario are looking to offer another C$2.5b boost over two years for automotive capital projects as part of a C$8.7b plan to help sectors that have been affected by US tariffs.
The automotive manufacturing allotment includes C$1.5b from the federal administration along with C$1bn from Ontario, which is a province in Central Canada.
As part of automotive manufacturing allotment, these resources are developed to support manufacturers in upgrading equipment and assembly lines for electric and connected vehicle manufacturing.
The two governments will also create a Canada-Ontario Automotive Task Force in order to coordinate actions and lead industrial transitions.
Apparently, light-duty vehicle greenhouse gas emissions standards will stay at 2026 levels until the 2029 model year, and then increases will resume annually with the 2030 model year.
This is in accordance with the 2035 national target for electric vehicles, as stated in the Auto Strategy launched in February 2026. The plan aims to overhaul the domestic automobile manufacturing, protect jobs, and put the country at the top of electric vehicle production. Funding will come from the C$3b Strategic Response Fund and almost C$100m from the Regional Tariff Response Initiative so as to promote adaptation along with diversification of markets, as well as ongoing counter-tariffs on US auto imports.
The automotive sector directly employs over 120,000 people and contributes C$16bn per year to gross domestic product, the government says. The broader C$8.7b Canada-Ontario program features a C$5.22b five-year Joint Steel Action Fund, which comprises C$3.55bn from the federal government and C$1.67bn from Ontario, along with measures to reinforce sourcing and trade safeguards.
It will additionally allocate as much as C$2b for road infrastructure serving the Ring of Fire critical minerals region in Northern Ontario and coordinated permitting for associated projects.
Mark Carney, the Canada Prime Minister, said, “From mine to mill to assembly line, Canada and Ontario are protecting jobs today and making bold investments that will build a stronger, more resilient, more independent Canadian economy for tomorrow. Today’s action plan is cooperative federalism in action. Canada is strong. Canada is united. Canada is working.”