The Canadian government has announced a new initiative to support the steel industry with a $100 million investment. The program, called the Commodities Sectoral Support Program, will cover 50% of the transportation costs for Canadian-made steel moved by rail or ship within the country.
Transport Minister Steven MacKinnon revealed the program in Hamilton, emphasizing its importance in light of the U.S. imposing tariffs ranging from 10 to 50% on Canadian steel, aluminum, copper, and related products.
MacKinnon highlighted the critical role of Hamilton’s steel industry and similar producers across Canada, stating the government’s commitment to ensuring the industry’s resilience and growth.
Under the program, starting immediately, companies will receive rebates covering half of the expenses for transporting certified Canadian steel across provinces. This initiative is set to run for a year or until the allocated $100 million is exhausted, with individual producers eligible for up to $50 million in rebates.
MacKinnon hinted at the possibility of extending the program if the funds deplete prematurely, emphasizing the government’s flexibility in 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 make steel transport more affordable in response to the U.S. tariffs.
The rebate program aligns with Prime Minister Mark Carney’s economic agenda aimed at enhancing domestic product movement efficiency and reducing costs. Industry stakeholders, including Ron Bedard from ArcelorMittal Dofasco and Jason Card from the Chamber of Marine Commerce, expressed optimism about the program’s positive impact on the steel sector and national economy.