Canada launches $100M steel shipping rebate amid trade war

Canada is introducing a $100-million rebate program to ease the financial burden on domestic steel producers. Transportation Minister Steven MacKinnon announced the initiative, which will reimburse manufacturers for 50 percent of the freight costs associated with transporting eligible steel products across the country via rail or marine shipping.

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Ottawa plans to slash costs to send steel between provinces and territories for the next year in a bid to help domestic producers hit hard by tariffs.

The program, set to run for one year or until the allocated funds are exhausted, is designed to encourage Canadian companies to source steel domestically rather than relying on imports. This measure comes as Canadian industries, particularly the steel sector, face challenges from foreign tariffs and shifting global trade dynamics.

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Transportation Minister Steven MacKinnon is announcing a $100-million rebate plan today to pay back manufacturers for half the freight costs to send eligible steel products across the country by rail or marine shipping.

Only steel products of Canadian origin destined for use within the country will qualify for the rebate. The federal government also indicated it is exploring similar support measures for the forest sector, which is also experiencing difficulties due to U.S. tariffs and evolving international trade flows.

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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.