Canada unveils $6.2bn plan to shield manufacturers as Trump trade tariffs bite

Key Points:

• Canada has announced a $6.2 billion package to support its steel and auto industries in response to US tariffs, with $3.7 billion allocated to steelmakers and $1.8 billion to automakers over five years.
• Prime Minister Mark Carney stated that US tariffs have permanently changed the longstanding trade relationship, causing increased costs and disadvantages for Canadian workers and businesses, while Canadian auto exports to the US have dropped over 10%.
• Carney confirmed discussions with President Trump yielded no breakthrough but emphasized Canada's readiness to negotiate; meanwhile, Ontario Premier Doug Ford acknowledged that bilateral trade relations will not return to previous norms regardless of US political changes.
• The US Embassy accused Canadian politicians, including Industry Minister Mélanie Joly and Premier Doug Ford, of attempting to influence the upcoming US midterm elections through retaliatory tariff discussions and political advertising, allegations both leaders and independent analysts have denied.
• In response to shifting US trade priorities, Carney aims to double Canadian exports to non-US markets within ten years, signaling a strategic pivot away from reliance on an integrated North American auto industry.