Canada unveils $6.2bn plan to shield manufacturers as Trump trade tariffs bite
Canada has announced a $6.2 billion package to protect its steel and auto industries from US tariffs, as Prime Minister Mark Carney warned that Washington has permanently altered a trade relationship built over decades.
Carney and Ontario Premier Doug Ford jointly unveiled the plan on Wednesday, directing $3.7 billion to steelmakers and $1.8 billion to automakers over five years, with $1.1 billion of the auto funding coming from the federal government in Ottawa. The announcement came the same day US-owned Cleveland-Cliffs confirmed layoffs at its Hamilton, Ontario plant, underlining the human cost of the trade dispute.
Trade relationship altered
US tariffs have upended a trade bargain that's existed for decades, according to Carney. The damage to the auto sector is already visible in trade figures, as Canadian auto exports to the US have fallen more than 10 percent, while US exports to Canada have dropped more than 20 percent.
Diplomatic tensions escalate
The US Embassy issued a statement accusing Canadian politicians of seeking to influence next month's American midterm elections, naming Industry Minister Mélanie Joly and Ontario Premier Doug Ford. Both leaders rejected the allegations, as did independent analysts.
Carney confirmed he spoke at length with President Trump on Wednesday, covering trade, Iran and the Middle East, but signalled no breakthrough. Talks collapsed in August after Trump imposed 50% tariffs on around $20 billion in Canadian goods, prompting Canadian retaliation.
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.
Canada shifts focus
Carney has set a target of doubling Canadian exports to non-US markets within a decade, acknowledging that an integrated North American auto industry may no longer be Washington's priority. "Their approach has changed," he said. "So must ours."
Related
