The Canadian government has allocated $100 million to support the steel industry through a new initiative that covers half of the transportation expenses for moving Canadian-produced steel by rail or ship within the country.
Transport Minister Steven MacKinnon unveiled the Commodities Sectoral Support Program in Hamilton, addressing the impact of U.S. tariffs on Canadian steel, aluminum, copper, and related products. The U.S. currently imposes tariffs ranging from 10 to 50 percent on these goods.
MacKinnon emphasized the significance of Canada’s steel sector, stating, “Hamilton’s steel industry and steel producers nationwide are vital to our strategic interests. We are committed to safeguarding and enhancing this industry.”
The program, effective immediately, will reimburse companies for 50 percent of the costs of transporting certified Canadian steel between provinces. It is scheduled to run for a year or until the $100 million funding is exhausted, with individual producers eligible for a maximum rebate of $50 million. MacKinnon suggested the possibility of extending the program if the funds are depleted before the scheduled timeline.
Conservative Leader Pierre Poilievre, campaigning in Quebec, proposed extending the gas and diesel excise tax holiday and abolishing the industrial carbon tax to make steel transport more affordable, criticizing both Trump’s tariffs and domestic taxes.
The initiative is part of Prime Minister Mark Carney’s efforts to boost the Canadian economy by streamlining and reducing transportation costs within the country. Industry leaders, including 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 sector, supply chains, and the national economy.