TORONTO — The Ontario government announced nearly $2.6 million in new spending today for Downsview Aerospace Innovation & Research (DAIR), part of a broader push to shield aerospace and defence workers from shifting global trade conditions and rising U.S. tariffs.The money, awarded through the Trade-Impacted Communities Program (TICP), will support a $3.2 million initiative to strengthen supply chain resilience and help small and medium-sized businesses pursue new defence contracts. The announcement was made in London at the Farnborough International Airshow..Vic Fedeli, Minister of Economic Development, Job Creation and Trade, said the investment positions Ontario to benefit from increased defence spending by Canada and its allies.“As Canada and its allies make generational investments in the aerospace and defence sectors, Ontario stands ready to seize this once-in-a-lifetime opportunity,” Fedeli stated.DAIR, a not-for-profit consortium formed in 2020, brings together companies, academic institutions, and research organizations. The funding will back three main programs:1. The DAIR Green Fund for collaborative research and development in new aerospace technologies.2. The Supplier Development Initiative to help SMEs improve technology, operations, workforce skills, and strategy.3. The Defence Readiness Program to prepare businesses for secure defence supply chains and contracts..Phil Arthurs, executive director of DAIR, welcomed the investment as a way to make Ontario firms more innovative and competitive.“This investment through the Trade-Impacted Communities Program will help DAIR support Ontario SMEs in becoming more innovative, competitive, and resilient,” Arthurs said.The TICP forms part of Ontario’s nearly $30-billion tariff relief and support plan. It targets communities and industries hit by trade disruptions, with an emphasis on reducing reliance on U.S. markets through supply chain diversification..Ontario’s aerospace industry employs more than 25,000 people across over 200 companies and supports nearly 24,000 indirect jobs. The province’s defence sector spans armoured vehicles, aerospace, shipbuilding, and advanced manufacturing.Local MPP Michael Kerzner, York Centre, highlighted the historic significance of the Downsview site, birthplace of Canadian aviation milestones including the de Havilland Tiger Moth, Mosquito, and Bombardier aircraft programs.Bernard Derible, Ontario Military Defence Representative, added that the funding builds on the province’s long-standing strengths in defence and aerospace..The TICP is one tool among several, including the Ontario Together Trade Fund and manufacturing tax credits, aimed at economic resilience. The government has received over 80 applications since the program’s launch.Critics of such targeted subsidies often question whether direct taxpayer support for specific associations deliver broad economic returns or simply shifts costs amid ongoing federal-provincial trade negotiations. Ontario continues to face pressure from U.S. tariffs and global uncertainty..Geoff Knight is Ontario Legislative Reporter of the Western Standardgknight@westernstandard.newsTwitter: @GeckoJCKnight
