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Feds invest $100 million for smaller steel producers in wake of U.S. tariffs

Navdeep Bains, Canada's Minister of Innovation, Science and Economic Development, says the federal government is investing $100 million to ensure the competitiveness of small- and medium-sized steel producers.
Navdeep Bains, Canada's Minister of Innovation, Science and Economic Development, says the federal government is investing $100 million to ensure the competitiveness of small- and medium-sized steel producers. Ken Mann

The federal government is investing $100 million to ensure the competitiveness of small- and medium-sized producers within the steel and aluminum supply chain.

READ MORE: Federal minister tells Hamilton Steel Summit, ‘We have your back’

Navdeep Bains, Canada’s minister of Innovation, Science and Economic Development, made the funding announcement during a visit to Nova Steel in Stoney Creek on Monday morning.

Bains says it’s further protection for the industry in the wake of U.S. tariffs on Canadian steel.

READ MORE: Stelco revenue up 84% from last year despite steel tariffs

Bains estimates that about 300 Canadian businesses will benefit from the federal investment and that 5,000 jobs will be maintained across the country.

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He says the announcement is about “maintaining good quality jobs and investing in new technologies, machinery and equipment, that make businesses more innovative and competitive.”

U.S. President Donald Trump imposed tariffs, 25 per cent on steel and 10 per cent on aluminum, back in 2018 on national security grounds.

READ MORE: Bains: Federal government still not sure on next steps following Oshawa GM plant closure

Bains indicates that those tariffs, on both sides of the border, have disrupted supply chains and added extra costs for consumers and businesses across a wide range of industries.