The Canadian steel industry is receiving a boost from the federal government through a new $100 million program. The initiative will cover half the expenses for transporting domestically produced steel by rail or ship. Transport Minister Steven MacKinnon unveiled the Commodities Sectoral Support Program in Hamilton as a direct response to the U.S. imposing tariffs on Canadian steel, aluminum, copper, and related products.
MacKinnon emphasized the significance of Canada’s steel sector, particularly in Hamilton, stating that it holds strategic national importance. The program, effective immediately, will reimburse companies for 50% of the transportation costs for certified Canadian steel moved between provinces. It is set to run for a year or until the $100 million fund is depleted, with a maximum rebate cap of $50 million per producer.
In the event of the program running out of funds before the scheduled duration, MacKinnon hinted at a potential extension. Conservative Leader Pierre Poilievre, campaigning in Quebec, suggested making steel transport more cost-effective by extending the current gas and diesel excise tax exemption and eliminating the industrial carbon tax.
The rebate initiative aligns with Prime Minister Mark Carney’s efforts to bolster the Canadian economy by streamlining and reducing the costs of shipping goods within the country. Industry leaders like Ron Bedard from ArcelorMittal Dofasco anticipate a substantial positive impact on the steel sector nationwide. Jason Card of the Chamber of Marine Commerce expressed satisfaction with the program, emphasizing its role in enhancing supply chains and fortifying the national economy.
