The Canadian government is injecting $100 million into the steel industry through a new initiative that will cover half of the expenses for transporting domestically produced steel by sea or rail. Transport Minister Steven MacKinnon unveiled the Commodities Sectoral Support Program in Hamilton, citing the need to counter U.S. tariffs on Canadian goods, including steel, aluminum, and copper products.
MacKinnon emphasized the critical importance of Hamilton’s steel sector and other Canadian steel producers, affirming the government’s commitment to not only safeguarding but also fostering the industry’s growth and prosperity.
Under the program, which commences immediately, companies will receive rebates amounting to 50% of the costs for shipping certified Canadian steel between provinces. The initiative is set to run for a year or until the allocated $100 million is exhausted, with individual producers eligible for rebates of up to $50 million.
In response to inquiries about the program’s sustainability, MacKinnon suggested the possibility of extending it if the funds are depleted before the scheduled timeline. Conservative Leader Pierre Poilievre, campaigning in Quebec, proposed extending the current gas and diesel excise tax exemption and eliminating the industrial carbon tax to make steel transportation more cost-effective.
The rebate program aligns with Prime Minister Mark Carney’s agenda to enhance the Canadian economy by streamlining and reducing the expenses associated with domestic product shipments. Industry leaders like Ron Bedard, CEO of ArcelorMittal Dofasco, anticipate significant positive outcomes from the initiative, benefiting projects nationwide.
Jason Card from the Chamber of Marine Commerce expressed satisfaction with the announcement, highlighting the program’s potential to support various steel transportation needs across different regions, strengthen supply chains, and boost the national economy.