The Ontario Government is providing up to $1 billion in support funding to those sectors most impacted by the U.S. tariffs.
In a press release from this morning, the Ontario Conservative government announced it would be creating the Protect Ontario Financing Program, an initiative aimed at supporting the sectors in the Ontario economy that have been hardest hit by U.S. President Donald Trump’s various tariffs. The program is looking to provide up to $1 billion in liquidity support to those industries affected by section 232 tariff rates, which include the steel, aluminum and automotive sectors, by way of loans.
The Protect Ontario Financing Program is the first phase of the previously announced Protecting Ontario Account, a $5 billion initiative announced in the province’s 2025 budget.
Section 232 of the Trade Expansion Act authorized the U.S. president to place tariffs on goods from other countries if those imports were deemed to “threaten national security,” according to the U.S. Government. The U.S. government has since used the ruling to place tariffs, which Ontario labels “unjustified” on Canadian steel, aluminum and automotive materials. According to the province, Ontario is the leading province for manufacturing key industrial materials, and is the steel making hub of Canada, home to three large producers with a supply chain that supports 16,500 workers.
In the release from the government, Ontario Finance Minister Peter Bethlenfalvy said the program will help support the province’s economy, and its resiliency.
“Our government is leaving no stone unturned in our efforts to protect workers and businesses from the economic challenges facing Ontario,” Bethlenfavly said.
“The Protect Ontario Financing Program will help keep workers on the job in sectors that are being hit hard by tariffs while building a more resilient and self-reliant Ontario economy for the long term.”
According to the government’s release, Ontario-based businesses who are in the affected sectors and facing tariff-related challenges such as payroll, lease and utility payments will be able to access the program in addition to federal government supports such as loans and loan guarantees like the Export Development Canada (EDC) Tariff Impact Program, the Business Development Bank of Canada – Pivot to Grow Program, and the Large Enterprise Tariff Loan Facility. The businesses will undergo “rigorous assessment and due diligence” to determine eligibility for the Protect Ontario Financing Program and to ensure that taxpayer funds are used in an appropriate fashion. The province also states that the funding will help Ontario businesses avoid closures and layoffs, as well as protect “critical supply chains” in the face of continuing, fluctuating U.S. tariffs and related economic uncertainty.
“The tariffs levied by the U.S. government have left Ontario’s steel, aluminum, and auto sectors exposed to unprecedented challenges,” said Ontario Minister of Economic Development, Job Creation and Trade Vic Fedeli.
“Through the Protect Ontario Financing Program, our government will provide $1 billion in critical relief to protect workers and businesses at the front lines of our economy, ensuring that critical supply chains are equipped to weather the uncertainty of today, while building resilience to seize the opportunities of tomorrow.”
To help Ontario-based businesses determine if they eligible for funding through the Protect Ontario Financing Program, the government is launching a website at ontario.ca/page/protect-ontario-financing-program. Impacted businesses in applicable sectors are encouraged to visit the site for program details, as well as to complete an eligibility tool to determine if they are eligible for loan support under the program.
“Businesses that successfully screen through the preliminary eligibility requirements will be contacted to discuss their applications and next steps to qualify,” the government stated in its release.
“To ensure an agile and flexible approach, a third-party financial agent will be procured to effectively and efficiently process applications that have passed the initial screening process. This approach ensures a flexible and agile response to support the steel, aluminum and auto industries that are most impacted by unfair U.S. tariffs, helping sustain these sectors and build economic resilience during this turbulent time.”
