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 Canadian steel within the country by ship or rail. Transport Minister Steven MacKinnon unveiled the Commodities Sectoral Support Program in Hamilton in response to the U.S. imposition of tariffs ranging from 10 to 50 percent on Canadian steel, aluminum, copper, and related products.
Emphasizing the critical role of Hamilton’s steel industry and steel producers across Canada, MacKinnon expressed the government’s commitment to safeguard and enhance the industry’s prosperity. The program, effective immediately, will provide companies with rebates covering 50 percent of the transportation costs for certified Canadian-made steel transported between provinces.
Operating for a year or until the $100 million budget is exhausted, the program allows a single producer to receive a maximum rebate of $50 million. MacKinnon suggested the possibility of extending the program if the funds are depleted before the scheduled timeline, stating that adjustments will be made based on uptake and the sector’s needs.
In a different context, Conservative Leader Pierre Poilievre, campaigning in Quebec, proposed extending the gas and diesel excise tax holiday and eliminating the industrial carbon tax to make steel transportation more affordable. He criticized the negative impact of both Trump’s tariffs and domestic taxes on the industry.
The rebate program is part of Prime Minister Mark Carney’s economic strategy to enhance domestic transportation and lower costs for shipping goods within Canada. Industry leaders, such as Ron Bedard from ArcelorMittal Dofasco, anticipate significant benefits from the program, highlighting increased access to Canadian steel at reduced costs for projects nationwide.
Jason Card of the Chamber of Marine Commerce welcomed the announcement, noting the program’s positive effects on the steel industry, supply chains, and the national economy. The initiative is seen as a valuable step in supporting the movement of steel and strengthening economic resilience.