The Ontario government has launched a $1-billion financing program to help businesses in the steel, aluminum and auto sectors weather the impact of U.S. tariffs.
The Protect Ontario Financing Program, announced Wednesday, is the first phase of the $5-billion Protecting Ontario Account outlined in the 2025 provincial budget. It will offer loans to Ontario-based companies facing higher Section 232 tariff rates, with the aim of protecting jobs, operations and critical supply chains.
“Our government is leaving no stone unturned in our efforts to protect workers and businesses from the economic challenges facing Ontario,” Finance Minister Peter Bethlenfalvy said in a statement. “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.”
The province says businesses struggling with tariff-related costs such as payroll, leases and utilities will be able to access the loans in addition to federal supports like loans and loan guarantees. Applicants will undergo rigorous assessment to determine eligibility and ensure public funds are used responsibly.
“The tariffs levied by the U.S. government have left Ontario’s steel, aluminum, and auto sectors exposed to unprecedented challenges,” said Economic Development Minister 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.”
The program is open to Ontario-based companies in the affected sectors, and the province is launching a website with details and an eligibility tool. Businesses that meet the preliminary criteria will be contacted to discuss next steps, with a third-party financial agent to process applications that pass the initial screening.
Section 232 of the U.S. Trade Expansion Act allows the president to impose tariffs if imports are deemed a threat to national security. Ontario says the U.S. has used the measure to place unjustified tariffs on Canadian steel, aluminum and auto materials, threatening jobs and businesses in the province.
Ontario is Canada’s steel-making hub, home to three major producers and a supply chain supporting 16,500 workers. The province says its steel and aluminum industry is a secure supplier to North American manufacturing, while its auto sector is deeply integrated with U.S. markets.
Federal programs available to tariff-impacted businesses include the Export Development Canada Tariff Impact Program, the Business Development Bank of Canada Pivot to Grow Program and the Large Enterprise Tariff Loan Facility.
