Premier wants foreign companies to ‘protect the auto sector’ in Canada
Ontario Premier Doug Ford is now supporting the federal government’s developing auto strategy after meeting with federal Industry Minister Mélanie Joly at Queen’s Park, days after sharply criticising Ottawa’s new trade deal with China.
Ford — who had publicly warned that the agreement would hurt Canadian workers — adopted a markedly different tone following the talks. At a joint news conference, he thanked Joly for her work on the file and said the province intends to participate in the federal plan, according to CTV News.
The premier said the discussion with federal officials had given him a clearer understanding of the strategy, which is being shaped amid mounting concerns about electric vehicle (EV) imports and the future of Canada’s manufacturing base.
Recently, the federal government announced a new strategic partnership with China which includes a reduction of surtaxes on Chinese‑made EVs. The deal drew criticism from stakeholders, including Ford himself.
Ford previously argued that by lowering tariffs on Chinese electric vehicles, “this lopsided deal risks closing the door on Canadian automakers to the American market, our largest export destination, which would hurt our economy and lead to job losses,” according to the National Post.
‘Build the vehicles here’
Although neither Ford nor Joly released detailed policy measures, the premier set out clear expectations for foreign automakers that want access to the Canadian market.
“If companies are going to come in, no matter if it’s from China or over in Europe or over in Asia there, we have one request; build the vehicles here, protect the auto sector,” Ford said, according to the CTV News report. “Make sure you get your parts here. Make sure we get the technology here. Make sure you follow the guidelines.”
The premier also emphasised that firms must follow Canadian guidelines when operating in the auto sector, underscoring provincial concerns about protecting existing workers and the wider supply chain. These conditions are a central request of his government, Ford said.
Federal auto task force aimed at protecting workers
Joly used the news conference to confirm that Ottawa is creating an auto task force to co‑ordinate policy with Ontario. The group will focus on future strategic investments in the sector and on safeguarding Canadian manufacturing jobs.
She acknowledged that auto workers are facing significant pressure as the industry confronts new threats, including U.S. tariffs. Joly said the federal government cannot control foreign decisions on trade barriers, but it can influence what happens within Canada’s borders.
She noted that one of the government’s key levers is how it manages the manufacturing sector in Ontario, and said close co‑operation between federal and provincial officials will be required.
“The idea of this Auto Task Force will be about looking at future strategic investments and making sure also that we protect our workforce, and particularly our unionised workforce, and also making sure that trade works for workers and that they don’t feel that it’s going against them,” Joly said, according to the CTV News report.
According to two legal experts, as Canada pushes toward an ambitious 100% zero-emission vehicle (ZEV) sales mandate by 2035, a vital question is emerging – are we truly prepared for the labour market shock this transition may bring?
Benefits of EV deal with China
An EV deal with China can be beneficial to the Canadian economy and businesses, two economists previously argued.
“Doing so would provide automakers that produce in Canada with options for enhancing partnerships with Chinese EV companies in areas such as battery components, batteries, charging infrastructure, and even EV production. Examples could include licensing agreements for battery production technology, partnerships in charging infrastructure technology, battery chemistry research and development partnerships, or joint EV platform development,” said economists Andrew Foran and Likeleli Seitlheko in a TD Economics article.
“Any of these options in isolation could help domestic automakers to accelerate innovation, lower production costs, and enhance consumer product offerings. Simultaneously, it would likely help Canada return its EV adoption rate to an upward trajectory by overcoming persistent consumer concerns related to cost and range anxiety. Even if these partnerships only impact the margins of the EV ecosystem, Canada could still vastly improve its EV infrastructure, providing material benefits to its economy and ambitions for EV adoption.”
