The Canadian government has introduced a new initiative to support the steel industry by allocating $100 million to cover half of the transportation costs for Canadian-made steel within the country, whether by ship or rail.
Transport Minister Steven MacKinnon unveiled the Commodities Sectoral Support Program in Hamilton, citing the need to counteract the U.S. tariffs imposed on Canadian steel, aluminum, copper, and related products, ranging from 10 to 50 percent.
MacKinnon emphasized the critical importance of Hamilton’s steel industry and the national significance of steel producers across Canada, vowing to safeguard and enhance the industry’s prosperity.
Under the program, which commences immediately, companies will receive rebates covering 50 percent of the expenses for transporting certified Canadian steel between provinces. The initiative is set to run for a year or until the $100 million funding is depleted, with individual producers eligible for a maximum rebate of $50 million.
MacKinnon hinted at the possibility of extending the program if the funds are exhausted before the scheduled end date, stating that adjustments will be made based on uptake. 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 economic agenda to streamline and reduce shipping costs within Canada. Industry leaders, such as Ron Bedard from ArcelorMittal Dofasco, foresee significant benefits for the steel sector nationwide. Jason Card of the Chamber of Marine Commerce applauded the initiative, highlighting its positive impact on the steel industry, supply chains, and the national economy.