The Canadian government is injecting $100 million into the steel industry through a new program that will cover half of the expenses for shipping 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 counter U.S. tariffs imposed on Canadian steel, aluminum, copper, and related products ranging from 10 to 50 percent.
Describing Hamilton’s steel sector as critical on a national scale, MacKinnon emphasized the importance of supporting and strengthening Canadian steel industries across the country.
The program, effective immediately, will provide companies with a 50 percent rebate on the transportation costs of certified Canadian steel moving between provinces. It is set to run for a year or until the $100 million allocation is exhausted, with a maximum rebate of $50 million per producer.
MacKinnon hinted at the possibility of extending the program if the funds deplete before the designated timeframe, stating that adjustments will be made based on uptake levels.
Opposing the current gas and diesel excise tax and industrial carbon tax, Conservative Leader Pierre Poilievre suggested alternative measures to make steel transport more cost-effective.
The rebate initiative aligns with Prime Minister Mark Carney’s agenda to enhance the Canadian economy by streamlining and reducing internal shipping expenses.
ArcelorMittal Dofasco’s President and CEO, Ron Bedard, praised the program’s potential to significantly benefit the industry nationwide by providing affordable access to Canadian steel for various projects.
Jason Card from the Chamber of Marine Commerce expressed satisfaction with the program, emphasizing its role in supporting the steel industry, fortifying supply chains, and boosting the national economy by facilitating steel transportation across different regions and purposes.