Ontario’s Transportation Minister Prabmeet Sarkaria has asked the City of Toronto to consider a sole-source deal for new TTC Line 2 subway trains, arguing that supporting Ontario-made transit vehicles is crucial in the face of economic uncertainty created by U.S. tariffs.
In a letter sent to Mayor Olivia Chow on Wednesday, Sarkaria emphasized that the province is determined to defend local jobs and businesses amid President Donald Trump’s 25 per cent tariffs on Canadian steel and aluminum. The letter calls on the city to bypass an open bidding process and instead directly procure the new subway trains from Alstom, a company with a manufacturing plant in Thunder Bay.
“This is about standing up for Ontario workers,” Sarkaria wrote. “As President Trump’s tariffs take aim at Ontario’s economy, our government is doing everything in its power to support and protect Ontario workers and businesses.”
The push comes after the federal government committed $758 million last year to help Toronto replace aging trains on Line 2, which are approaching the end of their 30-year lifespan. That funding was matched by the City of Toronto and the Province of Ontario, which together pledged $1.52 billion under the 2023 Ontario-Toronto New Deal to purchase 55 new trains.
Sarkaria said the province was proud to sign that agreement, which ensures the safety and reliability of transit service for TTC commuters. But with economic uncertainty growing due to the ongoing trade conflict, he urged the city to “consider the broader benefits” of awarding the contract locally.
Sole-procurement through Alstom would keep the work—and the jobs—in Ontario, Sarkaria noted. He added that if the move changes the scope of the project, the provincial government is ready to collaborate with both the city and Ottawa to keep the train order on track.
Since the start of the new U.S. administration’s trade crackdown, the Canadian steel and aluminum industries have been hit hard, raising alarm across multiple sectors, including auto and construction. The tariffs have reignited debate over how Canada should respond and whether more projects should prioritize domestic production.
Sarkaria’s letter ends with a call to action: “We look forward to working with the city and the TTC to support Ontario workers by building made-in-Ontario trains.”