Transport Minister Steven MacKinnon announced a $100 million rebate program today that will reimburse manufacturers for 50 per cent of rail and marine freight costs to move Canadian made steel between provinces and territories. The initiative takes effect immediately and runs until next summer or until the funding is exhausted.
Only steel products that originate in Canada and are destined for a domestic market qualify for the rebate. The measure is designed to make domestic steel more competitive against United States and other foreign suppliers after U.S. tariffs and shifting global trade flows disrupted established supply chains.
Targeted relief for manufacturers
Companies that use steel in their manufacturing processes can apply for the rebates starting today. By lowering the cost of moving Canadian steel across the country, Ottawa hopes to encourage fabricators, automakers and construction firms to source locally rather than defaulting to imported metal.
The program covers rail and marine transport only. Trucking costs are not included. A government news release said the rebate will be paid out on a first come first served basis and urged interested firms to apply through the Transport Canada portal.
Broader trade strategy signalled
The announcement comes as the Liberal government navigates an escalating trade dispute with Washington. Steel and aluminum tariffs imposed by the Trump administration have raised input costs for Canadian producers and created uncertainty for downstream manufacturers.
Officials hinted that similar freight support could be extended to the forest sector, which faces its own tariff challenges and market volatility. No timeline or budget for a forest sector program was provided.
Industry groups have warned that transportation costs represent a significant barrier to internal trade, particularly for heavy commodities such as steel. The rebate addresses that friction directly, though it remains a temporary measure rather than a permanent fix to interprovincial trade barriers.
Based on reporting by Global News.