The Canadian government to fund $100 million for domestic aluminium and steel manufacturers

The Canadian government will reportedly fund $100 million, including $26 million for Quebec, in a bid to support domestic small and medium-sized enterprise aluminium and steel manufacturers. The news came when Navdeep Bains, minister of innovation, science and economic development made the announcement at Nova Steel in Hamilton on Monday, March 11.

The objective of this new initiative is to support small and medium-sized producers across the country, who had been impacted the most by the US metal tariffs. The government believes this funding will help their businesses to drive productivity, scale up, and expand into new market to create good middle-class jobs.

Bains said in a statement: “In the face of unjust and illegal U.S. tariffs hurting businesses and workers on both sides of the border, our government is standing shoulder to shoulder with our hard-working steel and aluminium workers and the users of their world-class products."

The Trump administration had imposed 25 per cent tariff on imported steel and 10 per cent on aluminium back in 2018 on national security grounds. That resulted in disrupted supply chains across both sides of the border and added extra costs for consumers and businesses of a wide range of industries.

The federal government says specific contributions will range from $150,000 to $1 million, to support up to a maximum of 45 per cent of eligible project costs.

"Steel and aluminum workers are a foundational part of our country's economy. The investments announced today will help companies to adapt and innovate, to remain competitive in the global marketplace, making this region even stronger and benefitting communities and workers across all of Canada," said MPs Filomena Tassi and Bob Bratina in a joint statement.