Liberal Leader Mark Carney says he will set up a federal fund to support the Canadian auto manufacturing sector as it faces tariffs and threats from the Trump administration.
Carney said the $2 billion Strategic Response Fund would be used to increase the competitiveness of the auto sector, protect jobs, increase training for workers, and build a more resilient supply chain extending from raw materials to finished vehicles.
“What we need to do is build more of those autos and more of each auto right here in Canada,” Carney said during a campaign stop on March 26 in Windsor, Ont., a key manufacturing hub.
“In the new world, that will be an advantage that will help insulate us from President Trump’s trade threats, and it will grow the economy right here in Windsor and across South Western Ontario,” he added.
There has been much uncertainty for the Canada’s auto sector since U.S. President Donald Trump took office in January. He has imposed two sets of tariffs on Canada, one related to border and drug trafficking concerns, and another on steel and aluminum.
Temporary exemptions were given to the three major U.S. car manufacturers, and another exemption was given for goods covered under the United States-Mexico-Canada free trade deal. Another wave of tariffs is expected to hit U.S. trade partners on April 2, with their set levels and targeted sectors yet to be disclosed.
Trump has also spoken a number of times about not wanting to import cars from Canada as he seeks to repatriate manufacturing to the United States to create more jobs for Americans and rebuild the country’s industrial base.
The automotive industry in Canada and the United States has been highly integrated for decades, with a single part moving across the border a number of times before a vehicle leaves the assembly line.
Along with promising a special fund for the auto sector, Carney said he would build an “All in Canada” network to increase parts production in Canada and limit their cross-border movement. He also said he would leverage government funding to prioritize the purchase of Canadian-built vehicles.
The Canadian auto industry plays a sizeable role in the economy, representing the number two export in terms of value.
Stakeholder groups say the industry employs over 125,000 workers directly, and over 460,000 indirectly.
Carney noted during his press conference his government had moved to change Employment Insurance rules before the campaign started to speed up access for workers impacted by the trade conflict.
In previous days, Carney promised to carry out a 1 percent tax cut for the lowest income tax bracket and to eliminate the GST on new homes under $1 million.
Conservative Party Leader Pierre Poilievre has made similar commitments which go further, promising a 2.25 percent tax cut for the lowest bracket and removing GST on new homes up to $1.3 million.
