Canada will invest C$4.7 billion to manufacture passenger rail cars domestically for the first time in 40 years, the government announced on Thursday. The funding will support the construction of 313 next-generation railcars at Alstom Canada’s facility in Thunder Bay, Ontario, and is expected to sustain around 700 jobs across Ontario and Quebec.
Prime Minister Mark Carney said the initiative underscores Canada’s commitment to reviving domestic industrial capacity in rail transport. The project marks a shift from prior production, which had been outsourced to the United States. The announcement follows escalating trade tensions with Washington, including retaliatory measures scheduled to take effect on September 8.
Canada plans to impose tariffs on approximately $20 billion of annual U.S. imports in response to U.S. tariffs imposed last month on $20 billion of Canadian goods. Carney reiterated the government’s readiness to negotiate a trade agreement with the United States when Washington is prepared, stressing that any deal must ensure "stability and credibility." The investment aligns with broader efforts to reduce reliance on foreign supply chains amid geopolitical trade disputes.
