The Canadian government is injecting $100 million into the steel sector through a new initiative that will cover 50% of the expenses for shipping Canadian-manufactured steel by rail or ship within the country.
Transport Minister Steven MacKinnon unveiled the Commodities Sectoral Support Program in Hamilton, citing the need to counteract the U.S. tariffs imposed on Canadian steel, aluminum, copper, and related products, ranging from 10 to 50 percent.
Emphasizing the critical national significance of Hamilton’s steel industry and steel producers across Canada, MacKinnon pledged to vigorously support and ensure the growth and prosperity of the sector.
The program, effective immediately, will provide companies with rebates equivalent to half of the transportation costs for certified Canadian steel transported between provinces. It is set to run for a year or until the $100 million funding limit is exhausted, with a maximum rebate of $50 million per producer.
MacKinnon hinted at a possible extension if the program depletes before its scheduled duration, stating a willingness to adapt based on uptake and the sector’s needs.
Meanwhile, Conservative Leader Pierre Poilievre proposed extending the current gas and diesel excise tax holiday and eliminating the industrial carbon tax to make steel transportation more affordable, criticizing both Trump’s tariffs and domestic taxes.
The rebate initiative aligns with Prime Minister Mark Carney’s efforts to fortify the Canadian economy by streamlining and reducing the costs of domestic product shipments. Industry stakeholders, including Ron Bedard from ArcelorMittal Dofasco and Jason Card from the Chamber of Marine Commerce, expressed optimism about the program’s positive impact on the steel industry, supply chains, and the national economy.