Canada’s defence committee urges domestic mineral processing; Tucson reports fewer encounters and smaller fentanyl loads
Canada is responding to trade and security pressures by funding tariff-hit industries and treating domestic critical-minerals processing as part of its defence capacity, while Ottawa and Washington postpone a trade deal. The key question is whether these industrial measures can strengthen supply-chain resilience as North American tariff negotiations remain unsettled.
Policy, Trade and Regional Developments
Canada backs tariff-exposed industries with C$8.7 billion plan
The federal government and Ontario announced a joint action plan on October 21 to support industries affected by U.S. tariffs and strengthen Ontario’s industrial base. The government values the package at C$8.7 billion in investments and measures covering automotive, steel, workers, businesses and critical minerals.
Separate reporting identifies C$6.2 billion in direct steel and auto support, including C$3.7 billion for steelmakers and C$1.8 billion for automakers over five years. The announcement followed layoffs at Cleveland-Cliffs’ Hamilton plant and comes as Canadian auto exports to the U.S. have fallen more than 10%.
The plan gives tariff-exposed companies and workers a public support mechanism while tying short-term relief to a longer-term effort to build an Ontario critical-minerals supply chain and diversify exports beyond the United States. Implementation will be the next test, particularly as trade talks with Washington remain stalled.
North American trade talks slip beyond the U.S. midterms
Canada is unlikely to reach a trade agreement with the United States before the November 3 midterm elections, according to Canadian officials. Trade Minister Dominic LeBlanc said contacts continue, but Ottawa will pursue a deal only if it serves the Canadian economy.
The parallel U.S.-Mexico discussions have also stalled over proposed reductions to 25% auto tariffs and 50% metal tariffs. Although both governments deny that negotiations have stopped, the setbacks leave manufacturers facing continued uncertainty over tariff relief and the future of the USMCA framework.
That uncertainty is already affecting capacity decisions and longer-term planning. An interim North American agreement by year-end now appears less likely, increasing the possibility that trade-related “decision lag” will continue into 2027.
Defence report elevates critical minerals to a security priority
A report from Canada’s Standing Committee on National Defence identifies critical minerals and supply chains as strategic issues for both the economy and national security. Its 19 recommendations include continued prioritization of domestic processing, refining and other midstream capacity as part of Canada’s defence industrial base and allied supply-chain resilience.
Witnesses highlighted nickel, copper, cobalt and rare earths as inputs for communications, aerospace sensors, autonomous systems and electrified military infrastructure. The report also points to workforce development and research investment.
Its significance lies in treating critical minerals as more than an extraction or economic-development issue. Turning the recommendations into sustained Canadian value-added capacity would support defence production and reduce vulnerability in allied supply chains.
Tucson reports fewer crossings but continued narcotics pressure
U.S. Customs and Border Protection reported a sharp decline in activity in Arizona’s Tucson Sector during fiscal 2026. The sector recorded more than 16,000 encounters, compared with more than 450,000 in fiscal 2024; officials also reported a 95% decline in gotaways and a 60% drop in criminal aliens encountered.
Drug trends were more mixed. Fentanyl seizure counts rose 10% from the previous year, but total fentanyl weight fell 30% as smugglers shifted to smaller, deeply concealed loads. Cocaine seizures increased. CBP is testing vehicle-inspection technology and planning a $63 million checkpoint relocation while preparing for seasonal agricultural traffic.
The figures show reduced migrant flows alongside continued investment in inspection systems and border infrastructure. The enforcement challenge has not disappeared: agencies must detect increasingly concealed shipments while preserving traffic flow for legitimate travelers and agricultural workers.
Canada warns travelers about Saudi airport disruptions
Canada has updated its Saudi Arabia travel advisory, urging Canadians to avoid non-essential travel because of a volatile regional security situation. Ottawa advises against all travel to King Khalid International Airport in Riyadh, which it says is closed amid military activity and disrupted operations.
The advisory also covers Asir, Jazan and Najran provinces and areas within 30 kilometres of Yemen’s border. Missile and drone attacks, military debris, armed clashes and sudden airport closures are among the cited risks. Canadians seeking to leave may need to consider operational airports in neighboring countries and should not rely on guaranteed Canadian government assistance.
The warning raises the practical difficulty of leaving Saudi Arabia, particularly for travelers who would normally use Riyadh. Sudden disruptions to airports and airspace make contingency planning essential.
Express Entry will favor qualifying high-wage work
Immigration, Refugees and Citizenship Canada will revise Express Entry on November 3, 2026, adding Comprehensive Ranking System points for candidates with eligible Canadian high-wage work experience or qualifying job offers. The framework includes occupations such as engineering and electrical work and uses occupation-level median wages to assess eligibility.
Candidates with at least one year of eligible Canadian high-wage experience can receive additional points. Qualifying job offers will no longer need an LMIA for these points or for certain federal skilled-worker programs, although employers must still show that offers are genuine and meet program rules.
The changes make wage level and Canadian work experience more influential in skilled-immigration selection. They may reduce administrative work for eligible employers and applicants, while candidates outside the high-wage framework will not receive the new advantages.