Federal government invests over $20M in southwestern Ontario businesses to combat tariff impacts

CTV London’s Gerry Dewan with a federal government funding announcement for area companies and organizations impacted by tariffs

The federal government is injecting more than $20 million into eight businesses and organizations across the London and Chatham-Kent regions to bolster their resilience against global trade pressures.

The funding, announced Friday as part of the government’s Regional Tariff Response Initiative, aims to modernize operations, adopt new technologies and expand growth opportunities for key sectors.

The minister responsible for FedDev Ontario, Evan Solomon, made the announcement at the Western Fair District, emphasizing the government’s commitment to domestic strength.

“Doesn’t matter what the world does. We control this. We’ve got the education and the workforce,” Solomon said to those gathered.

The investment arrives as the London region grapples with economic challenges, including an unemployment rate that reached 9.2 per cent in April, the highest among large cities nationally.

Solomon explained the strategy involves investing in the workforce and businesses to secure market access.

“We believe we’ve got invest in a workforce and you’ve got to invest in the builders, and then you’ve got to create a place so they can get customers,” he told CTV News.

The agri-food sector is a significant focus, with the Western Fair Association receiving a significant share of the funding: $8 million.

The investment will support the expansion and modernization of its agri-food business hub, the Grove, creating Grove 2.0. The project will add 36,000 square feet of production space and 20,000 square feet of cold storage, aimed at helping small and medium-sized agri-food enterprises diversify markets and strengthen supply chains.

“The goal is to help small and medium-sized agri-food enterprises diversify their markets, strengthen supply chains and enhance regional economic resilience,” said Kris Dinel, VP of strategy at Western Fair Association.

Kapil Lakhotia, president of the London Economic Development Corporation, noted the investment will fuel the region’s growing agri-food sector, which already comprises over 150 companies employing 10,000 people.

“The investment today will help us build a pipeline of more food entrepreneurs,” Lakhotia commented.

The remaining funds will support seven other local businesses, primarily in the manufacturing sectors, including tool and die and plastic moulding operations in London, Chatham, and Wallaceburg. Companies like AarKel Tool & Die in Wallaceburg, which received $8.5 million for gigacasting tooling capabilities, and Starlim North America Corporation in London, awarded $1 million for a new cleanroom facility, are among the recipients. These projects are designed to improve operational efficiency and foster innovation.

Solomon acknowledged the strain on southwestern Ontario due to trade tariffs.

“We are really aware of how hard-hit southwestern Ontario has been in the tariff war. This is really the front line,” he said, underscoring the federal government’s strategy to counter tariff impacts and foster long-term prosperity in the region.