Ottawa plans to slash the cost of shipping steel domestically over the next year in a bid to help Canadian producers hit hard by tariffs.
Transportation Minister Steven MacKinnon was in Hamilton on Monday to announce a $100-million rebate plan to cover half of the freight costs for sending eligible steel products across the country by rail or ship.
The relief is meant to encourage companies that use steel in their manufacturing processes to turn to domestic suppliers rather than rely on the United States and other foreign suppliers.
“Canadians want to buy Canadian products. Canadians want their governments to buy Canadian products. Canadian businesses want to use more Canadian materials," MacKinnon said. "And our government wants to support that.”
Companies can apply for the rebates starting Monday and the program will run through to next summer, or until the funding is entirely paid out. A single recipient is eligible for a maximum cumulative rebate of $50 million.
Only products that are Canadian in origin and have a destination within the country will be eligible for the rebate. Anyone who pays the freight cost for shipping steel — producers, intermediaries or end users — can apply for the relief.
MacKinnon said the program will help ensure more made-in-Canada rebar makes its way into domestic construction, for instance.
"This is a tangible example of how rebar becomes more competitive and accessible to other Canadian markets by virtue of having transportation subsidies," he said.
Speaking to media in Chicoutimi, Que., on Monday, Conservative Leader Pierre Poilievre criticized the Liberals for maintaining the industrial carbon price and plans to resume federal excise taxes on fuel next month.
Poilievre argued these moves are adding more costs to steel producers than U.S. President Donald Trump's tariffs.
"We're calling for an end to the industrial carbon tax on steel, aluminum, autos and other production, and a full suspension of all gas taxes for the rest of the calendar year so that we can move our steel and other goods within Canada more affordably," he said.
Joining MacKinnon in Hamilton was Ron Bedard, head of the Canadian Steel Producers Association and the CEO of local fabricator ArcelorMittal Dofasco.
He said the ongoing 50 per cent U.S. tariffs on Canadian steel "have had a tremendous impact" but argued the sector has been resilient, with relatively few layoffs to date.
Bedard applauded the federal government's rebate program on Monday. He said ArcelorMittal Dofasco has set up new offices in Quebec and on both coasts to help it move into more domestic markets.
"Getting steel — from Sault Ste. Marie, from Regina, from Hamilton, from Quebec — to each extremity of the country is critically important and having access to competitive rail rates will help us serve provinces from East Coast to the West Coast," he said.
Prime Minister Mark Carney announced a plan in November to help cut freight costs for the steel and lumber sectors facing headwinds from U.S. tariffs and shifting global trade flows. The program initially was supposed to start in spring 2026.
The federal government hinted in a news release Monday that it's still working on supports for the forest sector.
The Forest Products Association of Canada welcomed the government's efforts to address transportation costs for the steel sector on Monday but noted the forest industry "requires a separate path forward."
Rail transportation costs take up a substantial share of margins in the forest industry and the association is looking for long-term solutions for rail network reliability and cost competitiveness.
“We appreciate the government’s recognition that steel and forest products face fundamentally different market dynamics and that the path forward for forestry should reflect the distinct needs of our sector. We’re not looking for Band-Aid solutions here," said Forest Products Association of Canada president and CEO Derek Nighbor in a media statement.
Picture Courtesy: THE CANADIAN PRESS/Adrian Wyld
