Government in Action

On this week’s Voice of Business, we’re taking a closer look at how the Government of Ontario has responded to the growing economic pressure caused by U.S.-imposed tariffs and international uncertainty. While these measures won’t solve all challenges overnight, and many businesses are still struggling, Ontario’s action represent significant steps in addressing the stress and pressures facing various industries. 
It often takes a crisis for us to evolve, and this trade war forced that evolution to happen sooner than expected. 
Just last month, Ontario led the way in removing several interprovincial trade barriers, a long-standing issue that has held back economic efficiency and domestic trade. By doing so, the province opened new pathways for goods, services, and talent to flow more freely across the country, a move that reduces our overreliance on the U.S. market and strengthens internal Canadian trade. 
Ontario has also taken further action on multiple fronts to support local businesses and future-proof our economy. 
One key step is a $750 million investment in Science, Technology, Engineering, and Mathematics (STEM) education across post-secondary institutions. This funding will support up to 20,500 new student seats per year, helping Ontario build a future-ready workforce in critical industries like advanced manufacturing, clean tech, and data science. As global demand rises for tech and engineering talent, this investment will help keep Ontario competitive. 
The province is also addressing a long-standing challenge around innovation ownership. A $3.39 million investment will help Ontario’s colleges and universities build stronger intellectual property (IP) capacity. This means research breakthroughs developed here are more likely to stay in the province, creating homegrown companies and jobs. It also protects Ontario from the common practice of IP being owned by foreign corporations through research partnerships, ensuring that the economic value of innovation benefits Ontarians first. 
To alleviate immediate financial pressure, Ontario has announced $11 billion in tariff relief and cost-saving measures. This includes $9 billion in suspended interest and penalties on various provincial taxes, including the Employer Health Tax and levies on insurance, gas, alcohol, and tobacco. In addition, $2 billion in WSIB rebates are being returned to businesses to help offset operating costs. Together, these moves will allow more businesses to retain staff, invest in operations, and weather economic uncertainty. 
The province is also expanding the Skills Development Fund by $1 billion over three years, ringing the fund’s total to $2.5 billion. This investment will help retrain and upskill Ontario workers, especially those affected by layoffs tied to tariff pressures. Whether transitioning into trades, healthcare, or other growing sectors, workers will be supported in securing good-paying jobs with long-term potential. 
These investments, from education and innovation to cost relief and workforce development, represent a strategic shift. Ontario is building a future-proofing our economy if a trade war does reappear in the future. While challenges remain, these efforts lay the groundwork for long-term prosperity, job growth, and economic resilience. 
For businesses, these measures open new opportunities to access skilled talent, manage costs, and stay competitive. For workers, they offer greater stability and upward mobility during uncertain times. At a broader level, Ontario’s investment in intellectual property is a strategic step toward addressing Canada’s productivity crisis, helping to ensure that innovations developed here stay here, fueling domestic growth and job creation. While no policy can solve every challenge overnight, these initiatives target critical areas in need of support. They provide relief for vulnerable industries like auto and steel, while also empowering post-secondary institutions to play a central role in developing a resilient, future-ready workforce to meet the demands of tomorrow’s economy and keep high-quality jobs in Ontario. ​