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 via ship or rail within the country. Transport Minister Steven MacKinnon unveiled the Commodities Sectoral Support Program in Hamilton, citing the need to counteract U.S. tariffs imposed on Canadian steel, aluminum, copper, and related products, ranging from 10 to 50%.
MacKinnon emphasized the critical importance of the steel industry in Hamilton and across Canada, pledging to safeguard and enhance its prosperity. The program, effective immediately, will provide eligible companies with a 50% rebate on the expenses of transporting certified Canadian steel between provinces. It is set to run for a year or until the $100 million funding is exhausted, with individual producers eligible for up to $50 million in rebates.
When asked about potential extensions if the funds are depleted before the scheduled timeline, MacKinnon hinted at possible adjustments based on the program’s uptake. Conservative Leader Pierre Poilievre, campaigning in Quebec, 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 efforts to boost the Canadian economy by streamlining and reducing the costs of domestic product shipments. Industry stakeholders, including Ron Bedard, President and CEO of ArcelorMittal Dofasco, and Jason Card from the Chamber of Marine Commerce, praised the initiative for its anticipated positive impact on the steel sector, supply chains, and national economy.