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 within the country, whether transported by ship or rail.
Transport Minister Steven MacKinnon revealed the Commodities Sectoral Support Program in Hamilton, addressing the impact of U.S. tariffs on Canadian exports. Currently, the U.S. has imposed tariffs ranging from 10 to 50% on Canadian steel, aluminum, copper, and related products.
MacKinnon emphasized the critical importance of Canada’s steel industry, particularly in Hamilton, stating that the program aims to ensure the industry’s resilience and growth.
Under the program, which launches immediately, companies will receive rebates covering half of the expenses for transporting certified Canadian steel interprovincially. The initiative is designed to run for a year or until the $100 million budget is exhausted, with individual producers eligible for rebates of up to $50 million.
In response to inquiries about the program’s funding lifespan, MacKinnon suggested the possibility of an extension if necessary, highlighting the government’s commitment to supporting the steel sector.
Conservative Leader Pierre Poilievre, campaigning in Quebec, proposed extending the gas and diesel excise tax holiday and eliminating the industrial carbon tax to reduce the cost of steel transport.
The rebate program aligns with Prime Minister Mark Carney’s agenda to enhance the Canadian economy by facilitating cost-effective domestic product shipments. Industry leaders, like Ron Bedard from ArcelorMittal Dofasco, anticipate significant benefits for steel producers nationwide.
Jason Card of the Chamber of Marine Commerce commended the initiative, emphasizing its positive impact on the steel industry, supply chains, and the overall national economy.
