Algoma Steel Requests $500 Million Federal Aid Amid Tariff Challenges

Algoma Steel, based in Sault Ste. Marie, Ontario, is seeking $500 million in federal support as it navigates ongoing uncertainty due to U.S. tariffs on Canadian steel. The steel producer has formally applied for funding under the Large Enterprise Tariff Loan program, which was introduced by the Canadian government in March to assist companies adversely affected by tariffs and countermeasures.

In a press release, Algoma Steel expressed concern over the “significant impact” that U.S. tariffs have on its operations. In June, U.S. President Donald Trump signed an executive order that doubled tariffs on steel and aluminum imports to 50 percent, exacerbating the challenges faced by Canadian steel producers.

Financial Management and Strategic Considerations

Despite these challenges, Algoma reports it has sufficient resources to manage liquidity in the short term. However, the company is exploring various options to secure additional support and diversify its customer base. This strategy aims to mitigate the ongoing uncertainty stemming from U.S. tariffs, which have created a structural imbalance in the Canadian steel market.

Algoma is evaluating potential capital investments that align with long-term domestic demand in sectors such as defense and construction. These investments are intended to reinforce Canada’s industrial resilience while supporting a low-carbon transformation within the industry.

The amount of additional financing Algoma seeks will depend on the duration and severity of the trade dispute with the U.S. and the extent to which the Canadian steel market remains vulnerable to unfairly priced imports. As the situation evolves, the company remains committed to adapting its strategies to ensure sustainable operations.

This report was first published on July 24, 2025, by The Canadian Press, highlighting the pressing concerns of Canadian steel manufacturers amidst fluctuating international trade policies.