Ontario’s minister responsible for economic development, trade and job creation has announced a clear shift in focus for 2026, centering on defence-related investment and industrial expansion as a core strategy for maintaining economic momentum amid ongoing global trade uncertainty. Over the past year, the minister — Vic Fedeli — traveled to around 20 countries in an effort to strengthen international ties and attract new business to the province. In the coming year, that international outreach will remain a priority but with a stronger emphasis on defence sector opportunities.

Faced with what he described as a constantly shifting global trade environment, particularly due to changes in U.S. trade policy and broader geopolitical volatility, Fedeli is positioning Ontario to benefit from rising defence spending worldwide. His goal is to secure foreign production commitments within Ontario while also helping local defence manufacturers expand into new export markets. This includes encouraging large multinational companies to consider establishing or growing operations in the province, as well as supporting existing businesses as they pursue exports.

A concrete example of this strategy is the provincial government’s engagement with Algoma Steel, where officials see an opportunity to align defence demand with local industrial capacity. With significant defence spending expected globally — such as the European Union’s multi-trillion-dollar “ReArm Europe” initiative — Ontario hopes to leverage that demand to support domestic production of steel plate and infrastructure components used in defence applications. Plans include funding partnerships to build a second steel plate line and new I-beam facilities, which provincial and federal leaders believe will create long-term jobs and industrial capability.

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The minister’s defence-centric approach also includes planned announcements in early 2026 about additional provincial support for Ontario’s roughly 300 defence component companies, aimed at helping them advance product development and compete more effectively in global markets. Fedeli has described this strategy as both a way to diversify Ontario’s economic base and to shield local industry from instability in traditional trade channels.

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The shift toward defence investment and export growth comes amid broader efforts by the provincial government to stimulate job creation and economic resilience in the face of external pressures. While details are still emerging, the emphasis on defence suggests Ontario is targeting sectors with strong projected demand and longer-term industrial value, rather than relying solely on traditional export partners or short-term incentives.