The Canadian government is injecting $100 million into the steel industry through a new initiative that will cover half the expenses of shipping Canadian-made steel by rail or ship domestically. Transport Minister Steven MacKinnon unveiled the Commodities Sectoral Support Program in Hamilton, citing the need to counter U.S. tariffs on Canadian products.
Currently, the U.S. has imposed tariffs ranging from 10 to 50 percent on Canadian steel, aluminum, copper, and related items. MacKinnon emphasized the critical importance of Hamilton’s steel sector and other steel producers across Canada, vowing to support and enhance the industry’s growth.
The program, effective immediately, will reimburse companies for 50 percent of the transport costs for certified Canadian steel moving interprovincially. It is set to run for a year or until the $100 million funding is depleted, with a maximum rebate of $50 million per producer. MacKinnon hinted at a possible extension if the program exhausts its budget prematurely.
Conservative Leader Pierre Poilievre, campaigning in Quebec, proposed extending the gas and diesel excise tax holiday and eliminating the industrial carbon tax to lower steel transport costs. Meanwhile, Prime Minister Mark Carney’s initiative aims to fortify the Canadian economy by streamlining and reducing domestic shipping expenses.
Industry stakeholders, like Ron Bedard of ArcelorMittal Dofasco and Jason Card of the Chamber of Marine Commerce, expressed optimism about the program’s positive impact on the steel industry and national economy. Bedard highlighted the broader accessibility of Canadian steel, while Card praised the initiative for enhancing supply chains and economic resilience.
