The Canadian government is injecting $100 million into the steel industry through a new initiative that will cover 50% of the expenses for transporting Canadian-manufactured steel by ship or rail across 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%.
MacKinnon emphasized the crucial role of Hamilton’s steel sector and other steel producers nationwide, affirming the government’s commitment to safeguard and enhance the industry’s resilience and prosperity.
The program, commencing today, will provide rebates to companies for half of the transportation costs for certified Canadian steel transported interprovincially. It is set to run for a year or until the $100 million fund is depleted, with individual producers eligible for up to $50 million in rebates.
In response to inquiries about potential fund depletion before the program’s timeline ends, MacKinnon suggested a possible extension, stating a willingness to adapt 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 affordable.
The rebate program aligns with Prime Minister Mark Carney’s economic strategy to enhance domestic product shipping efficiency and affordability. Industry leaders, such as Ron Bedard from ArcelorMittal Dofasco, anticipate a significant positive impact on the steel sector nationwide, emphasizing improved access to Canadian steel and benefits for various projects across the country.
Jason Card of the Chamber of Marine Commerce lauded the initiative, highlighting its role in supporting the movement of steel, strengthening supply chains, and boosting the national economy through enhanced steel transportation facilitation.
