Ontario and Canada Working Together to Protect Auto Workers from Tariffs

In the face of U.S. tariffs and rising global economic uncertainty, the Ontario government remains focused on strengthening the economy and protecting impacted workers and businesses. As part of this ongoing effort, the provincial and federal governments recently announced an $8.7 billion trade action plan, which included new, joint measures dedicated to fortifying Ontario’s automotive industry, protecting good-paying jobs and attracting investment that will enhance the competitiveness of the province.

Despite the impacts of tariffs and trade disputes, Ontario continues to remain a key destination for global automotive manufacturing investment. Earlier this week, Ontario welcomed an $867 million investment from Honda Canada to retool its manufacturing facilities in Alliston and meet the rising demand for next-generation hybrid-electric and gasoline-powered vehicles across the North American market. This investment, which includes the reshoring of engine production to Ontario, is being supported by up to $156 million in funding from the Ontario government. In addition to supporting the production of approximately 400,000 Ontario-made vehicles per year, the project will protect more than 4,000 auto workers in Alliston, as well as over 30,000 indirect jobs and more than 50 local suppliers, further delivering on the government’s plan to secure new domestic manufacturing mandates.

“Ontario has long stood at the forefront of global auto manufacturing and in the face of uncertainty, our government is taking dedicated actions to protect our world-class workers and sustain this vital industry,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “By bolstering our supply chains and fostering the conditions for investment, we’re ensuring that our strategic industries can withstand the pressures of present day and remain resilient for generations to come. Honda’s investment is integral to this effort and we look forward to seeing this retooling enhance their Alliston’s operations, while further anchoring our workers at the heart of their North American supply chain.”

The province will continue to work closely with the federal government and industry partners to protect Ontario jobs in the automotive sector, including the automotive supply chain. As part of the joint trade action initiative, the provincial and the federal governments have committed to investing a combined $2.5 billion over two years in capital projects, enabling manufacturers to invest in modern machinery and upgrade production lines. The partnership will also see the establishment of a Canada-Ontario Automotive Task Force to support the industry’s transition and better coordinate the implementation of new measures, in addition to maintaining Canada’s greenhouse gas emissions standards for new light-duty vehicles at 2026 levels through the 2029 model year — with annual increases resuming in the 2030 model year, in line with Canada’s 2035 electric vehicle target set out in Canada’s new Auto Strategy.

Honda’s investment signals a strong vote of confidence in the stability, reliability and predictability of the province’s economy and the resilience of Canada’s automotive supply chain. Since starting production in 1986, Honda Canada has become the second-largest auto manufacturer by volume within the country and the Alliston facility continues to stand as the global lead plant for the Honda CR-V. This latest investment builds on that legacy and positions Ontario as the leading producer for some of the brand’s best-selling global models.

Since 2020, Ontario has attracted tens of billions of dollars in new investments in vehicle manufacturing and the battery supply chain. As Canada continues to navigate the impacts of U.S. tariffs and global economic uncertainty, the provincial government remains focused on fortifying its industrial base and diversifying its export partners to protect Ontario’s families and workers. By lowering taxes, cutting red tape and fostering the conditions for companies to innovate and expand, the province will establish the most resilient, self-reliant and competitive economy in the G7.

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