Canada Launches 50% Steel Freight Rebate for Interprovincial Shipments
The program forms part of a broader series of federal measures aimed at supporting Canada’s steel industry and increasing the use of Canadian steel in the domestic market.
Canada has launched a new steel freight rebate covering 50% of eligible rail and marine transportation costs for Canadian steel shipped between provinces and territories.
The new $100 million Commodities Sectoral Support Program opened for applications on August 10, 2026, as part of the federal government’s efforts to increase domestic trade and make it less costly to move Canadian steel to customers across the country.
The program will operate until summer 2027 or until all available funding has been claimed.
Transport Canada has published a list of steel products eligible for the program through its rebate portal.
Under the program, a shipper is considered any entity that incurs the freight-rate cost of transporting eligible goods.
To qualify for the 50% rebate, shipments must involve eligible Canadian steel or steel products and have both a Canadian origin and a Canadian destination.
The requirements also differ by mode of transportation:
Rail shipments originating at the ports of Vancouver, Prince Rupert, or Montreal are not eligible, though eligible rail shipments ending at those ports can qualify. This restriction is intended to prevent imported goods from receiving the rebate.
The 50% steel freight rebate is calculated on the shipping cost after any discounts or incentives have been applied. Applications, which are given out on a first-come, first-served basis, are subject to an eligibility assessment and remain subject to available funding.
Certain costs are excluded from the rebate, including taxes, penalties, and additional contracted services that weren't part of the original freight quote.
Cole International provides trade consulting and freight forwarding services to help Canadian businesses manage the movement of goods across Canada and international markets.
Reach out to one of our trade professionals to discuss your shipping requirements and how changes affecting Canada’s steel sector may impact your supply chain.