Ford Vows to Sustain Ontario's EV Sector Commitment Amidst U.S. Trade Threats

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Ford Vows to Sustain Ontario's EV Sector Commitment Amidst U.S. Trade Threats
ELECTRIC VEHICLESAUTOMOTIVE INDUSTRYTRADE WAR
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Ontario Premier Doug Ford reaffirms his commitment to the province's electric vehicle (EV) sector, despite potential trade threats from the U.S. under President Trump. While Ford pledges unwavering support, his political rivals offer less definitive stances.

Progressive Conservative Leader Doug Ford stated on Thursday that he will uphold Ontario's commitment to the burgeoning electric vehicle (EV) sector if re-elected. His main political rivals, however, were less definitive in their responses. U.S. President Donald Trump has previously expressed his country's disinterest in Canadian cars, despite signing a free trade deal with Canada and Mexico during his first term.

He has also threatened to impose 25 percent tariffs on all Canadian imports unless border security is improved. Trump has made it clear that he aims to target Ontario's automotive industry, seeking to bolster domestic vehicle production. Ford's government entered into an auto pact with the federal government in 2023, agreeing to contribute one-third of the production incentives offered to Volkswagen, Stellantis, and LG Energy Solution for their EV battery plants. This agreement was partly a response to former U.S. President Joe Biden's Inflation Reduction Act, which includes a tax credit for clean vehicle purchases. 'Even if President Trump tears up America's commitment to the auto industry, we will not,' Ford declared during a campaign stop in London, Ontario. 'I want to make it clear to every partner we have in Ontario's electric vehicle and battery supply chain: a re-elected PC government will honour our commitment to invest in the sector.' NDP Leader Marit Stiles emphasized her support for protecting the auto industry, while stating her intention to scrutinize the deals with Stellantis and Volkswagen. 'I believe in the EV sector, I think this is important for the future of our own economy,' Stiles said at a campaign event in Toronto. 'Doug Ford does not make good deals for Ontario generally, and I’m going to be looking very carefully at the details of the deals that he’s struck with those folks,' she added. Liberal Leader Bonnie Crombie, when asked about her stance on supporting Ontario's EV manufacturing and supply chain market, expressed a desire to diversify the province's economy. 'I’m very concerned that the premier has put all our eggs in the EV basket, has not tried to diversify our economy, insulate us in any way, and brought different kinds of investment into Ontario and create jobs,' Crombie stated at a stop in Mississauga, Ontario. Should Trump follow through with his threat to target Ontario's auto sector through tariffs and canceled subsidies, Ford pledged to invest an additional $1 billion in a skills development fund for auto workers to transition into different trades. He also promised $100 million for an employment program to assist workers in training and transitioning to jobs in 'sectors that are vulnerable to trade disruptions.' Ford's government has made significant investments in the electric vehicle sector during his first two terms as premier. In addition to the deals with Stellantis and Volkswagen, Ford collaborated with Prime Minister Justin Trudeau to attract Honda, which plans to establish its own battery-making facility adjacent to its production plant in Alliston, Ontario. This deal does not involve production subsidies, but the federal government will provide the Japanese automaker with $2.5 billion through tax credits. Ontario committed to providing up to $2.5 billion directly – such as for capital costs – and indirectly, such as for covering site servicing costs. The province has also attracted several related businesses, including a cathode production plant and a separator plant, both manufacturing materials essential for building electric-vehicle batteries. Ford has also pledged to develop a comprehensive manufacturing chain, extracting critical minerals from the ground in northwestern Ontario and transporting them south for processing and assembly. Canadian automaker leaders and union executives collectively traveled to Washington, D.C., en masse for Trump's inauguration last week in an effort to counter potential tariffs, which would devastate the industry and substantially increase car prices in the U.S. Materials, parts, and vehicles cross the border numerous times under a recently updated pact initiated by Trump in his first term, as part of a renegotiated free trade agreement between the two countries and Mexico

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ELECTRIC VEHICLES AUTOMOTIVE INDUSTRY TRADE WAR CANADA ONTARIO DOUG FORD DONALD TRUMP

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