Ottawa launches $100M steel freight rebate to support domestic producers

The federal government is launching a $100-million rebate program to reduce the cost of shipping eligible Canadian steel products between provinces and territories, as domestic producers face pressure from tariffs and changing trade conditions.

According to the federal government, the program will cover 50 per cent of eligible freight costs for manufacturers moving qualifying steel products by rail or marine transport within Canada.

Transportation Minister Steven MacKinnon announced the program Monday. The government says the measure is intended to encourage Canadian manufacturers that use steel in their operations to source more of their materials domestically rather than from the United States or other foreign suppliers.

Applications for the rebates open Monday. The program is scheduled to continue until next summer or until the $100-million allocation is fully distributed. Only steel products of Canadian origin that are shipped to a destination within Canada will qualify.

The government also said it is examining potential measures for Canada's forest sector as U.S. tariffs and shifts in global trade flows affect Canadian industries.