Canada Unveils $6.2bn Package to Support Steel and Auto Sectors Hit by US Tariffs

Canada announced a $6.2 billion (€5.7 billion) support package on Wednesday, 21 October, to protect its steel and automotive industries from tariffs imposed by the United States. Prime Minister Mark Carney and Ontario Premier Doug Ford presented the plan jointly. It is Ottawa's response to a trade dispute with Washington that, in Carney's words, has permanently changed a relationship built over decades.

How the money is split

The largest share, $3.7 billion (€3.4 billion), is earmarked for steelmakers, while $1.8 billion (€1.65 billion) goes to automakers. The funds are to be spent over five years. Of the auto funding, $1.1 billion (€1 billion) will come from the federal government in Ottawa.

On the day of the announcement, US-owned Cleveland-Cliffs confirmed layoffs at its plant in Hamilton, Ontario.

Carney said the tariffs have also raised costs for American families. Canadian auto exports to the US have fallen by more than 10 percent, while US exports to Canada have dropped by more than 20 percent. He stressed that this weakens industries on both sides of the border.

Talks with Trump and future plans

Carney spoke at length with US President Donald Trump on Wednesday about trade, Iran and the Middle East. There was no breakthrough, but Canada remains ready to negotiate. Talks collapsed in August after Trump imposed 50% tariffs on roughly $20 billion (€18.4 billion) of Canadian goods, and Canada responded with retaliatory measures.

Carney has set a goal of doubling exports to markets outside the US within a decade. Ford said that regardless of the midterm results or who occupies the White House, relations will not return to how they were.

Accusations of election meddling

The same day, the US Embassy in Canada issued a statement accusing Canadian politicians of trying to influence next month's US midterm elections for Congress. It named Industry Minister Mélanie Joly for discussing retaliatory tariffs aimed at Republican-led states, and Ford for running a US television ad featuring former President Ronald Reagan criticising tariffs. That ad prompted Trump to walk away from trade talks in October 2025. Both politicians rejected the allegations. Daniel Béland, a political science professor at McGill University, called them absurd.