The Canadian government has allocated $100 million to support the steel industry through a new initiative that will cover 50% of the transportation costs for Canadian-made steel shipped or transported by rail within the country.
Transport Minister Steven MacKinnon unveiled the Commodities Sectoral Support Program in Hamilton, stating that it is a direct response to the U.S. tariffs imposed on Canadian steel, aluminum, copper, and related products, ranging from 10 to 50 percent.
MacKinnon emphasized the critical national importance of Hamilton’s steel industry and steel producers across Canada, affirming the government’s commitment to safeguarding and fostering the industry.
The program, effective immediately, will provide rebates to companies for half of the expenses involved in transporting certified Canadian steel interprovincially. It is designed to run for one year or until the $100 million funding limit is exhausted, with individual producers eligible for a maximum rebate of $50 million.
In the event that the program depletes its funds before the designated timeline, MacKinnon hinted at the possibility of an extension, indicating flexibility in adapting to the program’s uptake.
Conservative Leader Pierre Poilievre, campaigning in Quebec, suggested enhancing the affordability of steel transport by extending the current gas and diesel excise tax exemption and eliminating the industrial carbon tax, citing the detrimental impact of U.S. tariffs and domestic taxes on the industry.
The rebate program aligns with Prime Minister Mark Carney’s initiative to bolster the Canadian economy by streamlining and reducing the costs of domestic product transportation.
Industry stakeholders, including Ron Bedard, president of ArcelorMittal Dofasco, and Jason Card from the Chamber of Marine Commerce, expressed optimism about the program’s positive implications for the steel sector and national economy, highlighting the wide-reaching benefits for various projects and supply chains across Canada.