The Canadian government has allocated $100 million to support the steel industry through a new initiative that will cover 50% of the transportation costs for Canadian-made steel moved 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 imposed on Canadian steel, aluminum, copper, and related products ranging from 10 to 50%.
Highlighting the strategic importance of the steel sector, MacKinnon emphasized the program’s commitment to safeguarding and enhancing the industry’s resilience and prosperity nationwide.
The program, effective immediately, will provide a 50% rebate to companies transporting certified Canadian steel interprovincially, with a maximum rebate of $50 million per producer until the funding is exhausted within a year. MacKinnon hinted at a possible extension if the program’s budget is depleted before the scheduled timeline.
In response, Conservative Leader Pierre Poilievre proposed extending the gas and diesel excise tax exemption and eliminating the industrial carbon tax to make steel transportation more cost-effective, criticizing both U.S. tariffs and domestic taxes.
The initiative aligns with Prime Minister Mark Carney’s economic agenda to streamline domestic transportation and reduce costs for businesses. Industry leaders like Ron Bedard of ArcelorMittal Dofasco anticipate significant positive impacts across provinces, facilitating access to Canadian steel for various projects nationwide.
Jason Card from the Chamber of Marine Commerce praised the program, emphasizing its role in supporting the steel industry, strengthening supply chains, and boosting the national economy by facilitating steel movement across different regions and purposes.