The Canadian government is investing $100 million into the steel industry through a new initiative that will cover half of the expenses for transporting domestically-produced steel by rail or ship. Transport Minister Steven MacKinnon unveiled the Commodities Sectoral Support Program in Hamilton, citing the need to counteract U.S. tariffs on Canadian goods, which currently range from 10 to 50 percent on steel, aluminum, copper, and related products.
MacKinnon emphasized the critical importance of Canada’s steel sector, particularly in Hamilton, stating that the government is committed to not only preserving but also enhancing the industry’s growth and prosperity. The program, effective immediately, will reimburse companies for 50 percent of the transportation costs for certified Canadian steel shipments between provinces for up to a year or until the allocated $100 million is exhausted, with a maximum rebate of $50 million per producer.
Regarding the program’s potential extension if funds run out prematurely, MacKinnon suggested a flexible approach based on uptake and outcomes. In contrast, Conservative Leader Pierre Poilievre, campaigning in Quebec, proposed lowering transport costs by extending the gas and diesel excise tax exemption and eliminating the industrial carbon tax as an alternative to combatting the impact of U.S. tariffs.
The rebate initiative aligns with Prime Minister Mark Carney’s economic agenda to boost intra-country trade efficiency and affordability. Industry leaders, such as Ron Bedard of ArcelorMittal Dofasco, anticipate significant positive effects on steel production nationwide. Jason Card from the Chamber of Marine Commerce commended the program for enhancing supply chains, strengthening the economy, and supporting the steel industry’s diverse projects across Canada.