Canada will invest C$4.7 billion ($3.41 billion) to build and maintain VIA Rail passenger cars domestically, the first such manufacturing in Canada in four decades. Prime Minister Mark Carney announced the funding at a news conference in Thunder Bay, Ontario.
The investment will enable the construction of 313 new-generation passenger cars at Alstom Canada’s Thunder Bay facility, a shift from previous U.S.-based production. The project is expected to support nearly 700 jobs across Ontario and Quebec.
The announcement coincides with rising trade tensions between Canada and the United States. Canadian retaliatory tariffs on approximately $20 billion of U.S. imports are set to take effect on September 8, following U.S. tariffs imposed the prior month on $20 billion of Canadian goods. Carney emphasized the need for stability and credibility in any future trade negotiations with Washington, stating the government remains ready to engage when the U.S. is prepared.
