The Canadian government has allocated $100 million to support the steel industry through a new initiative that covers half the transportation expenses for moving Canadian steel within the country by ship or rail. Transport Minister Steven MacKinnon unveiled the Commodities Sectoral Support Program in Hamilton, citing the need to counter U.S. tariffs on Canadian steel, aluminum, copper, and related products.
The U.S. currently imposes tariffs ranging from 10 to 50 percent on Canadian steel and other metal products. MacKinnon emphasized the critical national importance of Canada’s steel industry, stating that the program aims to not only protect but also enhance the industry’s growth and prosperity.
Under the program, which launches today, companies will receive rebates for 50 percent of the costs associated with transporting certified Canadian steel across provinces. The initiative is set to run for one year or until the $100 million budget is exhausted, with individual producers eligible for rebates up to $50 million.
MacKinnon mentioned the possibility of extending the program if the funds are depleted before the designated timeframe. Conservative Leader Pierre Poilievre suggested that reducing gas and diesel excise taxes and eliminating the industrial carbon tax would be more effective in lowering steel transportation costs.
The rebate program aligns with Prime Minister Mark Carney’s strategy to strengthen the Canadian economy by facilitating affordable domestic product shipments. Industry leaders like Ron Bedard from ArcelorMittal Dofasco and Jason Card from the Chamber of Marine Commerce have expressed optimism about the program’s positive impact on the steel sector and national economy.