August 23, 2026 to August 29, 2026

This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news for car manufacturers, parts suppliers, car dealers, rental companies, and importers/exporters in the automotive industry. Once a week, we break down the most important updates in this space in under five minutes.

Want to track the upstream and downstream forces affecting Automotive? Don’t miss this week’s updates in Manufacturing and Oil & Gas. Also consider subscribing to our Automotive - Washington edition covering critical GR news south of the border.

📋 In This Week's Newsletter

• 🇨🇦 Federal Government News
• 🗺️ Provincial Government News
• 📚 What We're Reading This Week

Federal Government News

Canada Responds to New US Tariffs with Countermeasures and $7.5 Billion Support Package

On August 25, the Government of Canada announced a suite of measures in response to the United States' imposition of a 50% tariff on $27.6 billion of Canadian goods effective August 22. Minister François-Philippe Champagne confirmed that Canada will impose counter-tariffs of 15%, 25%, and 50% on US products targeted by recent US Section 338 and Section 232 tariffs, with rates matching the US tariffs and coverage totalling $27.6 billion in imports. Sectors affected include steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics. The package includes $1.5 billion in new Regional Tariff Response Initiative (RTRI) funding via Canada's seven Regional Development Agencies, $500 million in new liquidity supports under BDC's Pivot to Grow program, and an additional $2 billion for the new Canada Strong Diversification Fund. Rapid Response Supports for Workers and Employers total $3.5 billion, with flexibility enhancements to the Large Enterprise Tariff Loan facility. Measures take effect September 8, while existing supports are expanded to address emerging needs across affected sectors.

Sources: www.canada.ca

Department of Finance Engages with Stakeholders on Tariff Response

On August 26, Deputy Minister Nick Leswick of the Department of Finance Canada met with industry and labour stakeholders to discuss the government's policy action in response to the US tariffs. Officials provided an overview of the $7.5 billion in new economic supports, clarified the matching nature of Canadian counter-tariffs, and detailed the mechanisms for accessing liquidity and retraining support. The session addressed industry concerns about ongoing uncertainty and operational impacts. The department indicated it will maintain close monitoring of sector effects and stands ready to adjust support programs for businesses and workers facing trade disruptions.

Sources: www.canada.ca

FedDev Ontario Invests $6.6 Million to Modernize Etobicoke Businesses Impacted by Tariffs

On August 27, James Maloney, MP for Etobicoke-Lakeshore, announced over $6.6 million in combined repayable investments for five local businesses under FedDev Ontario’s Regional Tariff Response Initiative (RTRI). SWTCH Energy will receive $4 million to expand EV charging infrastructure and software services domestically and abroad, supporting resilience against trade disruptions. The other recipients include All Wood Fine Interiors, Clear Air Carbon Fiber, Just Vertical, and Rawcology, each funded to upgrade manufacturing capacity, mitigate supply chain risks, and access new markets. This initiative is part of the newly expanded $1.5 billion RTRI intended to strengthen regional supply chains and safeguard jobs in the wake of US tariffs.

Sources: www.canada.ca

Pacific Economic Development Canada Allocates $10 Million to Lower Mainland Businesses Amid Trade Disruptions

On August 28, Minister Gregor Robertson detailed a $10 million investment through PacifiCan’s RTRI funding for 12 businesses and organizations across British Columbia’s Lower Mainland. Recipients include Apex Aluminum, Acrocargo Express, Unilia (Canada) Fuel Cells, and others, with funding directed toward facility modernization, automation, adoption of AI-driven management systems, and domestic manufacturing of hydrogen fuel cells for vehicles. The targeted support aims to strengthen supply chains, facilitate entry into new international and US markets, and protect employment in advanced manufacturing, steel, aluminum, and forestry. Funds will also support digital transformation and productivity in supply chain and critical components sectors.

Sources: www.canada.ca

Minister Robertson Consults B.C. Industry Leaders on Federal Tariff Mitigation

Minister of Housing and Infrastructure Gregor Robertson convened a tariff response meeting in Vancouver on August 27 with B.C. industry representatives from sectors exposed to new US tariffs. Topics included supply chain disruptions, cost pressures for exporters, and immediate support needs. PacifiCan will work with small- and medium-sized enterprises to facilitate access to the RTRI, incorporating feedback from industry to optimize federal support as trade negotiations remain suspended. The meeting forms part of ongoing collaboration between the federal government, industry, and regional partners in supporting impacted sectors.

Sources: www.canada.ca

Minister Hajdu Launches the Transportation and Supply Chain Workforce Alliance

On August 24 in Calgary, Minister Patty Hajdu announced the formal launch of the Transportation and Supply Chain Workforce Alliance. This initiative, led by Trucking HR Canada in partnership with CIFFA, aims to address persistent labour shortages in Canada’s $96.5 billion transportation and warehousing sector. Employers, educators, and labour groups will collaborate on strategies for skills development, talent attraction, technology adoption, and coordinated workforce planning across trucking, rail, marine, air, and warehousing. The Alliance complements earlier federal alliances for the mining and advanced manufacturing sectors.

Sources: www.canada.ca

StatsCan Advance Manufacturing Survey Reports Slight Downturn for July

Statistics Canada’s advance estimate for the Monthly Survey of Manufacturing indicates that total manufacturing sales edged down 0.2% in July 2026. Notably, declines were registered in chemical and fabricated metal product subsectors. The data provides an early indicator of manufacturing sector momentum amid broad supply chain and trade volatility, with implications for auto parts, finished vehicles, and key component producers.

Sources: www.statcan.gc.ca

Provincial Government News

Ontario Expands Support for Tariff-Impacted Workers and Businesses

On August 24, the Ontario government broadened eligibility for the Protect Ontario Financing Program, offering financial relief to workers and businesses affected by new US tariffs on automotive, steel, aluminum, and additional sectors. The initiative is part of Ontario’s $30 billion tariff relief plan.

Sources: news.ontario.ca

Ontario Expands Export Financing Support in Response to US Tariffs

Ontario announced on August 24 the expansion of the Protect Ontario Financing Program to additional sectors now affected by new US Section 338 and Section 232 tariffs, including automotive, mechanical, electrical, plastics, and paper products.

Sources: news.ontario.ca

Alberta Invests $16 Million in Edmonton-Area Technology and Emissions Reduction Projects

The Government of Alberta is investing nearly $16 million in five Edmonton-based innovation projects, supporting advances in hydrogen, manufacturing, and emissions reduction. Over 500 jobs and significant emissions reductions are projected by 2030.

Sources: www.alberta.ca

Alberta Advances Innovation in Calgary Through $15 Million in New Technology Funding

On August 24, Alberta committed more than $15 million to seven Calgary-based projects developing technologies for energy, manufacturing, and wastemanagement, with an estimated 111,600 tonnes reduction in emissions and over 460 jobs by 2030.

Sources: www.alberta.ca

Quebec Schedules Public Auctions of Government Vehicles and Equipment for Autumn 2026

The Quebec Government Acquisitions Center will conduct two public auctions of vehicles, machinery, and equipment on September 16 in Montreal and November 4 in Quebec City. More than 560 lots will be available for businesses and the public.

Sources: www.quebec.ca

What We're Reading This Week

• News of the day: Auto tariff threats, TFSA as education fund, Unifor-GM labour deal, BDC expands into defence sector, settlement negotiations and more: A roundup of automotive industry and trade developments making headlines this week.

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