The Canadian government has allocated $100 million to support the steel industry through a new initiative that will cover 50% of the expenses for transporting Canadian steel by rail or ship across the country. Transport Minister Steven MacKinnon revealed the Commodities Sectoral Support Program in Hamilton, citing the necessity to counteract U.S. tariffs on Canadian goods, including steel, aluminum, and copper products.
Highlighting the crucial national significance of the steel sector, MacKinnon emphasized the program’s aim to not only sustain but also enhance the industry’s growth and prosperity. The rebate program, effective immediately, will reimburse companies for half of the costs associated with shipping certified Canadian-made steel between provinces.
Scheduled to run for up to a year or until the $100 million budget is depleted, the program allows a maximum rebate of $50 million per producer. MacKinnon hinted at a potential extension if the funds are exhausted before the end date, stating that adjustments would be made based on uptake and ongoing evaluation of support for the steel sector.
In response to the initiative, Conservative Leader Pierre Poilievre proposed extending the gas and diesel excise tax holiday and eliminating the industrial carbon tax as measures to further reduce steel transportation expenses. Meanwhile, industry stakeholders like Ron Bedard from ArcelorMittal Dofasco and Jason Card from the Chamber of Marine Commerce lauded the program, foreseeing positive impacts on the industry and national economy by facilitating steel movement and strengthening supply chains.