The Canadian government has allocated $100 million to support the steel industry through a new initiative that will cover 50% of the transportation expenses for Canadian-made steel shipped or transported by rail within the country.
Transport Minister Steven MacKinnon unveiled the Commodities Sectoral Support Program in Hamilton as a direct response to the U.S. imposing tariffs ranging from 10 to 50% on Canadian steel, aluminum, copper, and related products.
Emphasizing the strategic importance of the steel industry in Hamilton and across Canada, MacKinnon pledged to safeguard and enhance the industry’s well-being.
Under the program, which commences today, companies will receive rebates covering half of the certified Canadian-made steel’s interprovincial transportation costs. The initiative is set to run for one year or until the $100 million budget is exhausted, with individual producers eligible for up to $50 million in rebates.
MacKinnon hinted at a possible extension if the program’s funding depletes before the designated timeline, indicating a flexible approach to supporting the steel sector.
In response, Conservative Leader Pierre Poilievre proposed extending the gas and diesel excise tax holiday and eliminating the industrial carbon tax to make steel transport more cost-effective.
The rebate program aligns with Prime Minister Mark Carney’s economic strategy to streamline and reduce domestic shipping costs, aiming to fortify the Canadian economy.
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 sector and the national economy.