The Canadian government has allocated $100 million to support the steel industry through a new initiative that covers 50% of the transportation costs for Canadian-made steel shipped by rail or by sea within the country. 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, and copper products.
Acknowledging the strategic importance of the steel sector, MacKinnon emphasized the program’s commitment to not only preserving but also enhancing the industry’s prosperity. The initiative, effective immediately, will provide companies with rebates covering half of the expenses associated with transporting certified Canadian steel between provinces.
The program is set to run for a year or until the $100 million funding limit is reached, with individual producers eligible for up to $50 million in rebates. MacKinnon hinted at a possible extension if the funds are depleted before the scheduled timeline, emphasizing a flexible approach to supporting the steel industry.
In response to the announcement, Conservative Leader Pierre Poilievre proposed extending the current gas and diesel excise tax holiday and abolishing the industrial carbon tax to further alleviate steel transportation costs. MacKinnon stressed the ongoing evaluation of support measures for the steel sector, underscoring a commitment to its sustained growth.
The rebate program aligns with Prime Minister Mark Carney’s economic agenda aimed at streamlining and reducing the expenses of domestic product shipments. Industry stakeholders, including Ron Bedard from ArcelorMittal Dofasco and Jason Card from the Chamber of Marine Commerce, expressed optimism about the program’s potential to drive industry growth and strengthen the national economy by facilitating steel transportation across Canada.