The Ontario government is investing more than $1.1 million in Waterloo Region to help local aerospace, defence and health technology companies reduce their dependence on U.S. markets, protect existing jobs and expand into new domestic and international markets.
The funding, delivered through the province’s $40-million Trade-Impacted Communities Program, will support two projects expected to protect 1,230 jobs while strengthening local supply chains. The initiative comes as Ontario businesses continue to face uncertainty related to U.S. tariffs and broader global trade disruptions.
“With the threat of new U.S. tariffs — including on goods covered by the Canada-United States-Mexico Agreement — our government is taking action to protect Ontario workers and jobs,” said Premier Doug Ford. “Today’s investment is part of our plan to double down on Waterloo Region’s world-class companies in manufacturing, defence, health care and more, so we can meet whatever challenges that come our way.”
Aerospace and Defence Initiative Receives $838,700
The Regional Municipality of Waterloo will invest more than $1.3 million in its Waterloo Region Aviation, Aerospace and Defence Strategic Growth Initiative, known as AeroWR. Ontario will contribute $838,700 toward the project.
The initiative is expected to create 50 jobs and support 1,000 existing positions. It will focus on identifying market opportunities, diversifying exports and strengthening the region’s advanced manufacturing base.
“This funding is a vital investment in the future of our community. By supporting AeroWR, our collaborative, strategic initiative to strengthen and grow Waterloo Region’s aviation, aerospace and defence sector, we are directly empowering our local supply chain and advanced manufacturing network. Our region is uniquely positioned to lead the future of flight and this support ensures we continue to create high-quality jobs, drive innovation and build a globally competitive ecosystem right here at home.”
– Karen Redman
Chair, Region of Waterloo
The province said Waterloo Region’s aviation, aerospace and defence sectors are important parts of Canada’s broader aerospace supply chain and remain exposed to changes in U.S. trade policy.
Health Technology Accelerator Targets New Markets
Ontario is also providing $270,000 toward a $600,000 City of Waterloo initiative called Waterloo Health Innovation Economic Development — Building an Export-ready Health Tech Sector.
The accelerator program is expected to create 120 jobs and support another 60 positions. It will help intellectual property-based health technology companies expand into interprovincial and international markets while developing business models designed to withstand future trade disruptions.
“Waterloo is home to world-class innovators and this investment will help them reach new markets and opportunities connected to the new hospital to be built in Waterloo. We thank the Government of Ontario and the Accelerator Centre for collaborating to strengthen our health tech sector and to create future jobs and growth.”
– Dorothy McCabe
Mayor, City of Waterloo
Ontario Pushes Export Diversification Amid Trade Uncertainty
The Trade-Impacted Communities Program was introduced as part of Ontario’s nearly $30-billion tariff relief and support plan. It funds municipal governments, economic development organizations, industry associations, accelerators and other groups working to diversify supply chains and establish new trading relationships.
“In the face of unprecedented global economic uncertainty, our government is equipping communities across the province with the tools they need to ensure their local economies remain resilient today and competitive in the future,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “These investments will help local businesses diversify their export markets, strengthen our supply chains and build the kind of resilience that will keep Ontario’s economy strong for years to come.”
“Our local businesses have the talent and expertise to compete anywhere. This investment will help them grow, reach new customers and build a stronger, more resilient economy right here in Waterloo Region.”
– Jess Dixon
MPP, Kitchener South—Hespeler
“One of my responsibilities as MPP for Cambridge is meeting with local manufacturers across Cambridge and North Dumfries to better understand their contributions to our community and how I can best advocate for them. In recent months, U.S. tariffs have become the focus of nearly every conversation. Our government has taken a strong stand to support Ontario’s manufacturers and I am pleased to see Premier Ford and Minister Fedeli continuing to stand behind the businesses and workers who drive our local economy.”
– Brian Riddell
MPP, Cambridge
“Waterloo Region is home to strong and growing health technology and aerospace sectors. By investing in these key industries, we’re helping local companies reach new international markets, attract new investment to our region and reduce our reliance on U.S. trade. These investments will help build the kind of resilience that will keep Waterloo Region’s economy strong for years to come, while helping drive Ontario forward as we build one of the strongest, most competitive and self-reliant economies in the G7.”
– Mike Harris
MPP, Kitchener—Conestoga
The Waterloo funding is part of a broader provincial effort to reduce exposure to U.S. trade disruptions by supporting export diversification, domestic supply chains and strategic investment. Ontario says the measures are intended to help businesses remain competitive while protecting jobs and strengthening regional economies.