Ontario announced Wednesday that emergency funding will soon flow to businesses hammered by US trade measures, representing the province’s latest response to tariffs that have disrupted key industries since March.
The province will distribute $1 billion in loans targeting automotive and steel companies, sectors that have borne the brunt of trade restrictions imposed by President Donald Trump. The funding is the initial rollout of the “Protect Ontario Account,” a $5 billion emergency fund established in Ontario’s spring budget.
Companies can access loans to cover immediate operational costs including wages, rent and utilities as the trade conflict drags into its fifth month. The assistance comes as businesses face dual pressures from both US tariffs on their exports and Canada’s retaliatory measures on American imports.
“We’re going to really focus on the auto sector and the steel sector,” Premier Doug Ford said Tuesday, identifying the industries most affected by the escalating trade dispute. “They’re the ones that are really getting hit the hardest.”
The loan program follows $9 billion in provincial tax deferrals announced in April as part of Ontario’s response to the tariff crisis. The program will provide up to $1 billion in liquidity support for companies struggling to maintain operations.
Related: Trump Demands Higher Drug Prices for Canada as Tariffs Loom
Industry data shows the trade measures have already impacted Ontario’s economic outlook, with provincial growth projections cut to 0.8% for 2025, down from earlier forecasts of 1.7%. The automotive sector faces particular uncertainty as cross-border supply chains encounter new barriers.
The province plans to launch an online application system, with a third-party administrator processing requests.
The federal government has offered parallel support through tax remissions and special programs for automakers. However, Ontario has emphasized the need for provincial action given the concentrated impact on the province’s manufacturing base.
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