The Canadian government is injecting $100 million into the country’s steel industry through a new initiative. This program will cover half of the expenses for transporting Canadian-manufactured steel by rail or ship within Canada.
Transport Minister Steven MacKinnon unveiled the Commodities Sectoral Support Program in Hamilton as a direct response to the U.S. imposing tariffs on Canadian steel, aluminum, copper, and related products ranging from 10 to 50 percent.
Highlighting the crucial national significance of Hamilton’s steel sector and steel producers across the country, MacKinnon emphasized the government’s commitment to supporting and enhancing the industry’s growth and prosperity.
The program, commencing immediately, will provide companies with rebates equal to 50 percent of the transportation costs for certified Canadian-made steel moving between provinces. It is set to run for a year or until the $100 million budget is depleted, with individual producers eligible for a maximum rebate of $50 million.
MacKinnon hinted at a possible extension if the program exhausts its funds before the stipulated timeline, emphasizing the government’s willingness to adapt based on uptake and outcomes.
Conservative Leader Pierre Poilievre, campaigning in Quebec, suggested reducing steel transport costs by extending the gas and diesel excise tax holiday and eliminating the industrial carbon tax to counter the impact of U.S. tariffs.
The rebate initiative aligns with Prime Minister Mark Carney’s strategy to enhance the Canadian economy by streamlining and reducing domestic shipping expenses. Industry leaders, including Ron Bedard from ArcelorMittal Dofasco, anticipate significant positive effects on the steel sector and economic growth nationwide.
Jason Card of the Chamber of Marine Commerce lauded the announcement, recognizing the program’s role in facilitating steel transport and strengthening supply chains, ultimately benefiting the national economy and various industries across Canada.