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Prime Minister Mark Carney and Ontario Premier Doug Ford are expected to unveil new support for auto companies making clean investments during a time of uncertainty caused by the trade war with the U.S., CBC News has learned.
A source with knowledge of the announcement that is expected later Wednesday said it includes addressing Canada’s greenhouse gas standards after the Trump administration made changes on Monday.
The U.S. finalized rolling back fuel economy standards for new vehicles, reversing policies meant to boost fuel efficiency and promote using electric vehicles.
Industry Minister Mélanie Joly said on her way into a caucus meeting on Wednesday that the government wants to continue to provide support to auto companies impacted by the Trump administration’s reversal in regulations.
“A lot of our auto producers have been deeply impacted, not only by the American tariffs but indeed by the fact that the American administration has decided to reduce massively its different protection regarding GHG emissions,” Joly said.
Carney and Ford are slated to roll out the support package on Parliament Hill on Wednesday afternoon and are expected to be joined by their industry and finance ministers.
‘Trying to square the circle’
Joly said that along with providing support, the government also wants to be “pragmatic” and is working on its electrification strategy to get more battery-powered vehicles on the road.
That plan includes subsidies to try to get more Canadians to move to electric vehicles to reduce emissions, she said.
“We’re trying to square the circle,” she said.
Measures for steel, critical minerals
A second source, who was not authorized to speak publicly, said the two leaders will also roll out measures to help the steel and critical minerals sectors.
Ontario has been trying to get the federal government to help pay for and speed up development of the mineral-rich Ring of Fire region.
Ford has called mining critical minerals in this area an “ace in the hole” that could help give Canada leverage against American tariffs.
In August, U.S. President Donald Trump threatened to increase tariffs on all cars, trucks, auto parts and steel to 50 per cent on Jan. 1, 2027. That threat came after Carney announced he was retaliating with matching dollar-for-dollar tariffs on American goods.
The U.S. is already hitting finished vehicles and non-CUSMA-compliant auto parts imported to the U.S. with 25 per cent levies.
The Trump administration has also been hammering Canadian steel imports with tariffs ranging from 10 per cent to 50 per cent.
