Canada to Provide Steel, Auto Sectors With Billions to Ease Trade Crunch

By Paul Vieira

OTTAWA--Canadian Prime Minister Mark Carney said Wednesday his government would provide billions in financial support to steel and automakers as the domestic sectors face potential job losses fueled by the cross-border trade row.

The financial aid totals 7.5 billion Canadian dollars (US$5.3 billion). Carney said the money would help steel makers upgrade their mills to produce products for the domestic and non-U.S. markets, and help automakers accelerate a pivot to electric-vehicle manufacturing.

This represents the latest dollop of federal aid for companies that face financial strain since President Trump imposed hefty tariffs on foreign-made metals and automotives. Prior to Trump's second term, Canada was the largest foreign supplier of steel and aluminum to the U.S. Talks aimed at securing tariff relief from Washington collapsed in August, leading to a fresh deterioration in trade ties between the closely integrated economies.

The money also comes as the Canadian government finds itself in a dispute with Cleveland-Cliffs over the U.S. steel maker's plan to lay off workers at Ontario plants. Canadian officials have vowed to use all legal means at its disposal to ensure Cliffs lives up to employment obligations that the company made to secure government approval of its 2024 takeover of Stelco.

Cliffs Chief Executive Lourenco Goncalves has said the company hasn't breached the law and that a temporary reduction in headcount is needed as it refocuses its operations to counter the pressure on the industry from tariffs.

Meanwhile, carmaker Stellantis and its roughly 9,000 unionized Canadian employees are at an impasse in labor talks over plans by Stellantis to sell a Toronto-area factory to a local defense firm. The union and Canadian officials fear significant job losses unless Stellantis resumes production at the auto plant, which has been idled since 2024.

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

October 21, 2026 14:41 ET (18:41 GMT)