Canada
August 11, 2026
Canada launches CA$100M rebate to cut steel freight costs
Written by Laura Miller
Canadian steel producers will get new help moving material across the country under a federal freight rebate plan launched on Aug. 10.
Transport Minister Steven MacKinnon announced a CA$100 million program that will refund 50% of eligible rail and marine transportation costs for Canada-origin steel shipped between provinces and territories. The Commodities Sectoral Support Program runs for up to one year or until funding is exhausted.
The rebate applies to carload rail and breakbulk marine shipments. Only Canadian-made steel moving between two Canadian points qualifies. Shipments must carry mill certification and be shipped and invoiced on or after Aug. 10. Rail shipments originating at the Port of Vancouver, Port of Prince Rupert, or Port of Montreal are excluded to prevent rebates on imported goods.
Under the program, shippers can receive a rebate covering half of the total shipping cost. It does not apply to taxes, penalties, or extra contracted services that weren’t part of the original freight quote.
Shippers, including producers, intermediaries, end users, and public-sector entities, can apply through Transport Canada’s portal. Funding is on a first-come, first-served basis. The maximum payout per shipper is CA$50 million.
Eligible products are listed on the rebate portal and include flat-rolled steel, long products, scrap, iron, pig iron, ferroalloys, slabs, billets, and more.
MacKinnon said the measure aims to strengthen domestic supply chains and lower costs for Canadian manufacturers. “Canadians are looking for more opportunities to buy Canadian products, including Canadian steel,” he noted.
The program is part of Ottawa’s broader push to reinforce interprovincial trade and support commodity sectors, including steel and forestry.
Canadian steel industry response
The Canadian Steel Producers Association (CSPA) responded favorably to the news of the program.
“Moving steel across Canada is crucial, and today’s announcement from the Government of Canada will help us serve communities in every province and territory,” CSPA said in a LinkedIn post.
“A strong domestic steel sector is foundational to Canada’s future, and policies like the one implemented today will support us as we make the steel products on which our country relies,” the association added.
