The Canadian government is investing $100 million in the steel industry through a new initiative that will cover 50% of the transportation expenses for Canadian-made steel moved by ship or rail within the country.

Transport Minister Steven MacKinnon revealed the Commodities Sectoral Support Program in Hamilton, citing it as a direct response to the U.S. imposing tariffs on Canadian steel, aluminum, copper, and derivative products, ranging from 10 to 50%.

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

The program, commencing today, will reimburse companies for half of the costs associated with transporting certified Canadian steel between provinces. It is set to run for one year or until the $100 million funding limit is reached, with a maximum rebate of $50 million per producer.

Regarding the program’s future if funds deplete before the set timeline, MacKinnon hinted at the possibility of an extension based on the program’s uptake, affirming ongoing evaluation and support for the steel sector.

Conservative Leader Pierre Poilievre proposed extending the current gas and diesel excise tax exemption and eliminating the industrial carbon tax to further alleviate steel transport expenses in response to the U.S. tariffs.

Prime Minister Mark Carney’s initiative aims to fortify the Canadian economy by streamlining and reducing the costs of domestic product transportation, with the rebate program being a part of this strategy.

Industry stakeholders, including Ron Bedard from ArcelorMittal Dofasco and Jason Card from the Chamber of Marine Commerce, lauded the program’s anticipated positive impact on the steel industry, supply chains, and the national economy, emphasizing its role in facilitating steel movement across the country.