'We will protect workers from American tariffs, create higher-paying jobs, and build an all-in-Canada auto manufacturing network'
Canada’s newly appointed Prime Minister Mark Carney has announced a series of measures aimed at supporting automotive manufacturing workers and employers nationwide in response to tariffs imposed by the United States.
Carney plans to create a $2-billion Strategic Response Fund that will boost the auto sector’s competitiveness and protect manufacturing jobs.
The fund will also support workers’ upskilling in the industry, and build “a fortified Canadian supply chain – from raw materials to finished vehicles”.
“There’s no building without manufacturing, no manufacturing without strong workers, and no workers without strong unions,” said Carney, leader of the Liberal Party of Canada. “With today’s announcement, we will protect workers from American tariffs, create higher-paying jobs, and build an all-in-Canada auto manufacturing network.”
Recently, the federal government announced it is temporarily expanding Employment Insurance (EI) coverage to support Canadian workers affected by the economic uncertainty triggered by the US tariffs.
‘Grow the Canadian auto industry’
Carney also outlined plans to Build an “All-in-Canada” network for auto manufacturing component parts. Through this initiative, more car parts would be produced domestically, reducing cross-border dependency during production and attracting greater investment into the sector, said the prime minister.
His plan also includes maximizing Canada’s potential in steel, aluminium, and critical minerals “from exploration to battery production.” According to the Liberal Party of Canada, this will open up new economic opportunities, create higher-paying jobs, and contribute to a robust national economy.
Carney also plans to “leverage government funding to prioritize and procure Canadian-built vehicles, catalyzing domestic investment to grow the Canadian auto industry.”
The Liberal party also plans to protect Canadians against American tariffs, including by “removing all federally regulated internal trade barriers by Canada Day, cutting taxes for the middle class, making EI supports easier to access, and using all Canadian tariff proceeds to support Canadian workers,” the party said.
Half of employers expect to reduce their workforce headcount within the year in the face of the US tariffs, according to a previous KPMG report.
On Wednesday, Carney criticized US President Donald Trump’s auto tariffs on Canada.
Trump said earlier Wednesday that he was placing 25% tariffs on auto imports. “This is permanent,” he said, according to a report from the Associated Press.
“This is a very direct attack,” Carney responded, according to the report. “We will defend our workers. We will defend our companies. We will defend our country.”
Earlier this month, the Canadian government said it is imposing 25% tariffs against $155 billion of American goods in response to Trump’s tariffs.
Different Canadian provinces have also announced their own responses to the US tariffs. Previously, Unifor called for a coordinated government and industry response to the tariffs.
"These tariffs will hurt working people with higher prices for everyday goods, destroy jobs on both sides of the border and have devastating consequences for highly integrated manufacturing sectors, including auto, across Canada and the U.S.," said Unifor National President Lana Payne.
