The Canadian government has allocated $100 million to support the steel industry through a new initiative that will cover half of the expenses for transporting domestically produced steel by either ship or rail. Transport Minister Steven MacKinnon unveiled the Commodities Sectoral Support Program in Hamilton as a direct response to U.S. tariffs imposed on Canadian steel, aluminum, copper, and related products.
The U.S. has imposed tariffs ranging from 10 to 50 percent on Canadian steel and other metal products, prompting the Canadian government to take action to protect its steel sector. MacKinnon emphasized the critical national importance of the steel industry in Hamilton and across Canada, pledging to safeguard and promote its growth.
Under the program, which starts immediately, companies will be eligible for a 50 percent rebate on the transportation costs of certified Canadian-made steel transported interprovincially. The initiative is set to run for one year or until the $100 million funding is exhausted, with individual producers able to receive a maximum rebate of $50 million. MacKinnon hinted at a possible extension of the program if the funding is depleted before the scheduled timeline.
Conservative Leader Pierre Poilievre proposed alternative measures in Quebec to make steel transport more affordable, suggesting extending the gas and diesel excise tax holiday and eliminating the industrial carbon tax. He criticized both Trump’s tariffs and Carney’s taxes for their negative impact on the economy.
The rebate program aligns with Prime Minister Mark Carney’s efforts to enhance the Canadian economy by streamlining and reducing the costs of domestic product shipment. Industry stakeholders, including Ron Bedard of ArcelorMittal Dofasco and Jason Card of the Chamber of Marine Commerce, expressed optimism about the program’s potential to benefit the steel industry and strengthen the national economy by improving supply chains and facilitating steel transportation across the country.