The Globe and Mail reports in its Tuesday edition that nearly five months after promising a $2-billion fund to support Canadian carmakers amid a trade war, Prime Minister Mark Carney's government is facing pressure to act. The Globe's Adam Radwanski writes that Unifor president Lana Payne recently discussed the fund with Finance Minister Francois-Philippe Champagne, urging its inclusion in the upcoming federal budget. While Ms. Payne acknowledged the delays due to U.S. tariffs, she warned that further postponement could increase the risk of Canadian auto plants and suppliers closing or relocating. Mr. Champagne's office stated that the government is "developing a comprehensive industrial strategy to help companies retool and reinvest." There are indications that policy development has started. However, creating a policy that effectively allocates limited resources to address immediate needs while enhancing long-term competitiveness will be complex. For instance, Mr. Carney's government also has to figure out how to align new measures with industry goals that predate the trade war, including the long-term effort to create domestic electric-vehicle supply chains, and the push-back from carmakers on federal EV mandates.
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