Ottawa to rebate $100M in freight costs for shipping steel across Canada

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

Transportation Minister Steven MacKinnon has announced a $100-million rebate plan to pay back manufacturers half the freight costs for sending eligible steel products across the country by rail or ship.

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.

“Canadians want to buy Canadian products. Canadians want their governments to buy Canadian products. Canadian businesses want to use more Canadian materials,” MacKinnon said. “And our government wants to support that.”

Companies can apply for the rebates starting Monday and the program will run through to next summer, or until the funding is entirely paid out. A single recipient is eligible for a maximum cumulative rebate of $50 million.

Only products that are Canadian in origin and have a destination within the country will be eligible for the rebate.

The federal government hinted in a news release that it’s also looking at similar supports for the forest sector as U.S. tariffs and shifting global trade flows hamper Canadian industries.

Prime Minister Mark Carney announced a plan back in November to work with rail companies to halve freight rates for shipping lumber and steel interprovincially. The program was originally set to start in spring 2026.

This report by The Canadian Press was first published Aug. 10, 2026.