The Canadian government has allocated $100 million to support the steel industry through a new initiative that covers half the transportation expenses for Canadian steel shipments by rail or ship domestically. Transport Minister Steven MacKinnon unveiled the Commodities Sectoral Support Program in Hamilton, addressing the impact of U.S. tariffs on Canadian steel, aluminum, copper, and related products.
MacKinnon emphasized the strategic significance of Canada’s steel sector, particularly in Hamilton, stating the government’s commitment to safeguarding and enhancing the industry’s prosperity. The program, effective immediately, will provide eligible companies with a 50% rebate on interprovincial transportation costs for certified Canadian steel, with a maximum rebate of $50 million per producer.
In case the allocated funds are exhausted before the program’s one-year duration, MacKinnon hinted at the possibility of extending it based on demand. Conservative Leader Pierre Poilievre suggested alternative measures to lower steel transport costs, such as extending the gas and diesel excise tax exemption and eliminating the industrial carbon tax.
The rebate initiative aligns with Prime Minister Mark Carney’s economic revitalization efforts by streamlining and reducing domestic shipping expenses. 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 national economy, emphasizing its role in strengthening supply chains and facilitating steel movement across Canada.