The Canadian government is injecting $100 million into the steel industry through a new initiative that will cover 50% of the expenses for transporting domestically-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 goods. The United States has imposed tariffs ranging from 10 to 50% on Canadian steel, aluminum, copper, and related products.

MacKinnon emphasized the critical importance of Hamilton’s steel industry and other steel producers across Canada, pledging to safeguard and enhance the industry’s growth and prosperity.

The program, commencing today, will provide rebates to companies for half of the expenses incurred in moving certified Canadian-made steel between provinces. It is designed to run for a year or until the $100 million funding limit is exhausted, with individual producers eligible for a maximum $50 million rebate.

In response to inquiries about the program’s future if funds are depleted before the scheduled end, MacKinnon hinted at the possibility of an extension, stating that adjustments will be made based on uptake and ongoing evaluation to support the steel sector.

Conservative Leader Pierre Poilievre, campaigning in Quebec, proposed extending the current gas and diesel excise tax holiday and eliminating the industrial carbon tax as measures to make steel transportation more cost-effective.

The rebate program aligns with Prime Minister Mark Carney’s agenda to strengthen the Canadian economy by streamlining and reducing the cost of interprovincial product shipments. Industry stakeholders, including Ron Bedard of ArcelorMittal Dofasco and Jason Card from the Chamber of Marine Commerce, expressed optimism about the program’s positive impact on the steel sector and national economy.