The Canadian steel industry is set to receive a significant boost with a new $100 million federal program aimed at covering half of the transportation costs for Canadian-made steel shipped by rail or by ship within the country. This initiative, known as the Commodities Sectoral Support Program, was announced by Transport Minister Steven MacKinnon in Hamilton as a direct response to the imposition of U.S. tariffs on Canadian steel, aluminum, copper, and their derivative products.
MacKinnon emphasized the critical national importance of the steel industry in Hamilton and across Canada, stating that the government is committed to ensuring the industry not only survives but thrives. The program, effective immediately, will provide companies with a 50% rebate on the costs of transporting certified Canadian-made steel between provinces.
Operating for up to a year or until the $100 million funding is exhausted, the program allows a single producer to receive a maximum rebate of $50 million. MacKinnon suggested that an extension might be considered if the funding runs out before the designated timeline.
Meanwhile, Conservative Leader Pierre Poilievre proposed alternative measures in Quebec, suggesting an extension of the gas and diesel excise tax holiday and the elimination of the industrial carbon tax to make steel transport more affordable. He criticized the impact of both Trump’s tariffs and domestic taxes on the industry.
The rebate program aligns with Prime Minister Mark Carney’s economic strategy to enhance domestic trade by reducing shipping costs. Industry leaders, including Ron Bedard from ArcelorMittal Dofasco and Jason Card from the Chamber of Marine Commerce, expressed optimism about the program’s potential to benefit the steel sector and strengthen the national economy by facilitating the movement of steel products across Canada.