Govt launches USD 3.7 bln steel support fund

The federal and Ontario governments will establish a CAD 5.22 bln (USD 3.7 bln) joint steel action fund over five years to strengthen domestic production, expand export markets and protect jobs affected by US tariffs.

The fund will receive CAD 3.55 bln (USD 2.5 bln) from the federal government and CAD 1.67 bln (USD 1.2 bln) from the Ontario government. Announced by Prime Minister Mark Carney and Ontario Premier Doug Ford, the initiative forms part of a wider CAD 8.7 bln (USD 6.2 bln) industrial support package covering steel, automotive and critical minerals.

The fund will help steelmakers diversify production and supply growing domestic industries, including defence, advanced manufacturing, energy and infrastructure, while opening new overseas markets.

The governments will also prioritize domestic steel in public procurement through the Buy Canadian and Buy Ontario policies and strengthen enforcement against steel dumping and unfair subsidies.

A new joint steel task force will advise on measures to improve the sector’s competitiveness. Its initial priorities include reducing steel shipping costs, assessing the effectiveness of trade measures and monitoring import trends.

The package builds on previous support for domestic steel production, tariff-affected businesses and worker training. The steel industry supports more than 23,000 direct jobs, according to the government.

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