Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeCommoditiesOttawa offers to cover 50% of cost of shipping steel across Canada as tariffs weighThe program that aims to bolster the Canadian industry is backed by $100 million You can save this article by registering for free here. Or sign-in if you have an account.A Canadian flag flies above the steel mills in Hamilton, Ont. A new federal program will subsidize shipping Canadian steel within the country. Photo by Peter Power/Postmedia NewsThe federal government says it will now cover 50 per cent of the cost of shipping Canadian steel across the country.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorUnder a new Commodities Sectoral Support Program announced on Monday, steel shippers can apply for a rebate that will offset 50 per cent of the costs to ship domestic steel by rail or marine transport across provinces and territories.The program is backed by $100 million and is scheduled to run for one year or until its funds are fully diminished.Prime Minister Mark Carney and his cabinet have been trying to raise Canada’s consumption of domestically produced steel after the United States in 2025 imposed 50 per cent tariffs on Canadian steel.Since then, Carney has said Canada is too reliant on foreign steel and subsequently imposed progressively tighter quotas that limit the volume of foreign steel allowed to enter the country on a duty-free basis.“This is entirely consistent with the government’s approach to making it easier to build and buy Canadian,” Transport Minister Steven MacKinnon said.He also said there were some “obvious” price and logistical challenges to shipping steel across the country that the rebate aims to address.The Canadian Steel Producers Association, an industry lobby group for steel mills, issued a statement applauding the new program.Last fall, the federal government had promised to help subsidize the cost of shipping steel across the country, which users on the West Coast had flagged as a major concern given that the majority of the country’s steel mills are located in Ontario and Quebec.Canada has two major railway companies and steel producers have complained it is not financially feasible to ship their products to users on the West Coast.Steel buyers in provinces such as British Columbia have also increasingly voiced concerns that steel is becoming more expensive and difficult to obtain, particularly after the federal government imposed its tariff revenue quotas.Under the current policy, countries that lack a free-trade agreement with Canada are now limited to shipping 20 per cent of the annual volume exported here in 2024. Above that, a 50 per cent tariff kicks in. Free-trade countries are limited to 75 per cent of what they shipped in 2024 before triggering the 50 per cent tariff.The question of why British Columbia does not use more domestically produced steel is a matter of fierce debate within the industry, with many steel producers saying such buyers turn to cheaper imports that originate in countries where steel is unfairly subsidized.Ravi Kahlon, B.C.’s minister of jobs and economic development, has said it is simply too expensive to ship steel across the country, whereas shipping by marine vessels leads to more affordable steel.Hector Michaud, a territory manager for Cobra Rebar Ltd. in B.C., said his company has been using more domestically produced steel since the federal government imposed limits on steel imports, but that domestic transport is expensive and not always reliable from a timing perspective.His company mainly supplies rebar, the steel rods or mesh of steel wire used to strengthen concrete structures.“There’s no rebar business in B.C. that’s flourishing right now,” Michaud said. “Everybody is doing the work, just at a massively reduced profit margin. Shipping it from the East is just not very good financially.”But he said subsidized rail costs will help.MacKinnon said his government understands there’s a lot of work to do in terms of strengthening “the fluidity” of domestic supply chains, which is part of Canada’s plans to increase interprovincial trade and double its non-U.S. exports.In general, he said it’s been too easy for Canadian steel users in the West to turn to cheaper imports, in part because it is so expensive and difficult to ship across the country.“We’ve spent a lot of time talking to the railways about that general issue,” he said. “This is us leaning against that.” Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.