Ottawa to rebate $100M in freight costs for shipping steel across Canada

OTTAWA - The Canadian government intends to provide a $100 million rebate plan, beginning in the upcoming year, to help offset the freight costs associated with transporting steel domestically across the nation. Transportation Minister Steven MacKinnon announced the initiative in Hamilton on Monday, aiming to support Canadian steel producers who are facing significant tariff challenges.

The relief measures are designed to encourage companies that utilize steel in their manufacturing processes to purchase more domestic steel products rather than relying on imports from the United States and other foreign sources. MacKinnon emphasized that Canadians prefer to buy Canadian products and that the government is committed to supporting this preference.

Eligible companies can apply for the rebates starting on Monday, and the program will continue until the funding is fully distributed, typically by next summer. The rebate is limited to eligible steel products with Canadian origins and a destination within the country, and each recipient is entitled to a maximum cumulative rebate of $50 million.

Canadian Steel Producers Association CEO Ron Bedard highlighted that the ongoing 50% U.S. tariffs on Canadian steel have had a substantial impact on the sector but commended the government's rebate program. He noted that ArcelorMittal Dofasco has established new offices in Quebec and on both coasts to facilitate increased domestic steel distribution.

Bedard also stressed the importance of competitive rail rates to ensure steel reaches every region of the country. Prime Minister Mark Carney introduced a plan in November to alleviate freight costs for the steel and lumber sectors affected by U.S. tariffs and changing global trade dynamics. However, the program is still in the works for the forest sector, which faces distinct market challenges compared to steel.

The Forest Products Association of Canada expressed appreciation for the government's attention to steel sector transportation costs but called for tailored solutions to address the unique needs of the forestry industry.