Northeastern Ontario – The Federation of Northern Ontario Municipalities (FONOM) welcomes today’s announcement by Prime Minister Mark Carney outlining new federal measures to support Canada’s steel and softwood lumber industries, which continue to face unprecedented challenges due to aggressive U.S. tariff actions.
The federal plan includes strengthened protections for domestic producers, expanded financial supports for companies facing liquidity pressures, and new incentives to increase the use of Canadian steel and lumber in national infrastructure and housing projects. These measures aim to stabilize sectors vital to the economies of many Northern Ontario communities.
Prime Minister Carney announced that Canada will significantly tighten tariff-rate quotas on foreign steel imports, opening an estimated $850 million in domestic demand for Canadian producers. In addition, the federal government is allocating $500 million in new financing for softwood lumber firms, paired with a further $500 million expansion of the Business Development Bank of Canada’s softwood guarantee program.
FONOM is encouraged by the federal government’s recognition of the pressures facing Northern resource-based communities, where steel and lumber operations support thousands of jobs and anchor local economies.
“These measures acknowledge what Northern Ontario has long understood — that our steel and lumber sectors are national economic pillars,” said FONOM President Dave Plourde “U.S. tariffs continue to destabilize communities across the North, and today’s announcement provides needed tools to help our workers and industries adapt, compete, and grow.”
FONOM also welcomes the federal commitment to reduce interprovincial freight rates by 50 per cent for steel and lumber shipments beginning next spring. Lower transportation costs will help Northern producers access new domestic markets and move product efficiently while north-south trade remains constrained.
As part of the plan, the federal government will also advance the Buy Canadian Policy, ensuring that major defence, construction, and infrastructure projects prioritize Canadian steel, aluminum, and wood products. This aligns strongly with FONOM’s longstanding advocacy for procurement policies that support Canadian jobs and supply chains.
“Keeping Canadian dollars working in Canada is essential,” added the President. “These steps will create new demand for made-in-Canada materials while helping stabilize communities affected by unpredictable U.S. trade actions.”
FONOM looks forward to continued collaboration with federal officials to ensure the timely rollout of these programs, and to ensure that Northern Ontario municipalities and industries can fully benefit from the measures announced today.
Media Contact:
Dave Plourde, President
Federation of Northern Ontario Municipalities (FONOM)
705-335-1615 | [email protected]