Commenting on the trade impasse and tariff environment in Canada, Algoma Steel Group Inc, a leading Canadian producer of hot and cold rolled steel sheet and plate products, is concerned with the significant impact the current 50 percent Section 232 tariff on Canadian steel is having on its operations and outlook. Algoma has sufficient resources on hand to manage its liquidity over the near term. However, the uncertainty caused by the US tariffs resulting in a structural imbalance in the Canadian market leads the company to seek additional financing to support them during this trade dispute.
Algoma is exploring targeted liquidity tools and funding programs with the government to support its current operations and enable strategic diversification. This includes an application to the federal Large Enterprise Tariff Loan (LETL) program for CAD $500 million, ongoing discussion of potential terms of LETL support and an evaluation of capital investments that align with long-term domestic demand in sectors such as defense and construction, and reinforcing Canada’s industrial resilience and low-carbon transformation.
“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.”