July 24,2025
RED FM News Desk
Algoma Steel is requesting $500 million in federal assistance as it continues to face uncertainty caused by U.S. tariffs on Canadian steel.
The Sault Ste. Marie-based steelmaker has submitted an application under Ottawa’s Large Enterprise Tariff Loan Program, introduced in March to aid companies affected by international tariffs and trade countermeasures.
In a statement, Algoma emphasized “While bilateral trade negotiations continue, the Company is concerned with the significant impact the current 50% Section 232 tariff on Canadian steel is having on its operations and outlook.”
The call for support comes after U.S. President Donald Trump signed an executive order in June to double tariffs on steel and aluminum imports, raising them to 50 per cent.
While Algoma says it currently has sufficient liquidity to manage near-term operations, the company is exploring various strategic options to secure long-term support and diversify its customer base.
“We are taking a measured and disciplined approach to evaluating the implications of sustained trade barriers,” said Michael Garcia, CEO of Algoma Steel. “We continue to call for timely, prudent policy support to ensure Canadian steelmakers can remain viable contributors to the national interest. A strong Canadian steel industry is essential to Canada’s economic strength, environmental goals, and national security. With the right frameworks in place, we are confident Algoma will emerge from this period as a vital part of Canada’s nation-building agenda.”
Loading ...
