The Canadian government has allocated $100 million towards supporting the steel industry through a new initiative that will cover half the expenses of transporting Canadian-made steel by rail or ship within the country. Transport Minister Steven MacKinnon unveiled the Commodities Sectoral Support Program in Hamilton, citing the need to counteract U.S. tariffs on Canadian steel, aluminum, copper, and related products.
The U.S. has imposed tariffs ranging from 10 to 50 percent on various Canadian goods, prompting the Canadian government to prioritize the steel industry’s significance. MacKinnon emphasized the national importance of the steel sector and pledged to ensure its resilience and prosperity.
Under the program, which commences today, companies will receive rebates covering 50 percent of the costs for transporting certified Canadian steel between provinces. The initiative is set to run for a year or until the $100 million budget is exhausted, with individual producers eligible for rebates up to $50 million.
MacKinnon hinted at a possible extension if the program depletes its funding prematurely, emphasizing the government’s commitment to supporting the steel sector. In response, Conservative Leader Pierre Poilievre proposed extending the gas and diesel excise tax holiday and eliminating the industrial carbon tax to make steel transport more cost-effective.
The rebate program aligns with Prime Minister Mark Carney’s efforts to enhance Canada’s economy by facilitating affordable domestic product shipments. Industry leaders, including Ron Bedard from ArcelorMittal Dofasco and Jason Card from the Chamber of Marine Commerce, welcomed the initiative, highlighting its positive impact on the steel industry, supply chains, and the national economy.