Canada Strengthens European Trade Links While U.S. Uncertainty Continues

Ontario targets Europe, U.K. to diversify trade amid U.S. policy uncertainty.
Stellantis and VW announce EV investments worth billions in Ontario.
Province promotes local mineral supply for EV battery manufacturing growth.

Ontario’s Minister of Economic Development, Job Creation and Trade, Vic Fedeli, is seeking to deepen trade ties with Europe and the United Kingdom, citing concerns over the reliability of the United States as a long-term economic partner.

Fedeli travelled to Germany and the U.K. recently to meet with political and business leaders, coinciding with his attendance at the IAA Munich auto show. The visit’s goal was to reinforce Ontario’s position as a politically stable and resource-rich destination for automotive and technology investment.

“The plan is to solidify our east-west relationships rather than our relations with the United States,” Fedeli said during the trip.

Ontario’s actions come as the province builds momentum in its EV sector. Stellantis announced on September 10 that its Windsor Assembly Plant will return to a three-shift operation in the first quarter of 2026. The facility produces Chrysler minivans and the Dodge Charger.

Volkswagen Group’s battery subsidiary, PowerCo, awarded two construction contracts in August ahead of breaking ground on its $7-billion battery cell manufacturing plant in St. Thomas, Ontario. The facility is part of the automaker’s efforts to localize EV production in Canada.

“In Ontario, we’ve landed $46 billion Canadian worth of EV and auto business in the last four years,” Fedeli said. He added that new investment announcements are expected before the end of the year.

Fedeli credited Canada’s political stability for attracting 409 new companies to Ontario in the previous year, contributing nearly 25,000 jobs and $40 billion in additional investment. He noted that Ontario is positioning itself as an alternative to China for sourcing key minerals used in EV batteries.

“We are digging lithium out of the ground in northwestern Ontario; nickel out of the ground in northeastern Ontario, and in the far north,” he said. The province aims to refine and process these materials locally for use in regional manufacturing.

Fedeli also confirmed Ontario’s outreach extends beyond Europe, with efforts underway to strengthen ties with India and other Asian markets. His team has visited a dozen countries in 2025 and plans additional visits before the end of the year.

“Now more than ever, countries around the world are looking for ways to bolster their trading relationships with allies,” he said. “Each wants to land more investments and U.S.-proof themselves.”

Fedeli pointed to trade tensions under the Trump administration, particularly tariffs, as a key factor behind Ontario’s strategy. While he expressed hope for improved U.S.-Canada relations, he added, “Hope is never a plan.”

Source: Automotive News