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, citing the need to counteract the U.S. tariffs imposed on Canadian steel, aluminum, copper, and related products, ranging from 10 to 50 percent.
MacKinnon emphasized the critical role of Hamilton’s steel industry and the significance of steel producers across Canada, pledging to safeguard and promote the industry’s growth and prosperity.
Under the program, set to commence immediately, companies will receive rebates covering half of the certified Canadian steel transportation costs between provinces. The initiative is slated to run for a year or until the $100 million funding is exhausted, with individual producers eligible for a maximum rebate of $50 million.
MacKinnon hinted at a potential extension if the program depletes its funds before the scheduled duration, emphasizing the commitment to supporting the steel sector continually.
Conservative Leader Pierre Poilievre, campaigning in Quebec, proposed extending the gas and diesel excise tax holiday and eliminating the industrial carbon tax as a means to enhance the affordability of steel transport in response to the U.S. tariffs.
The rebate program aligns with Prime Minister Mark Carney’s economic agenda to streamline and reduce domestic shipping costs, aiming to fortify the Canadian economy. Industry leaders, such as Ron Bedard from ArcelorMittal Dofasco, anticipate significant positive impacts on the industry and national economy.
Jason Card of the Chamber of Marine Commerce expressed satisfaction with the program, highlighting its potential to enhance steel movement efficiency, strengthen supply chains, and boost the overall economy through supporting the steel industry across various regions and purposes.