Algoma Steel seeks CAD$500M in operational support

The company says it is seeking government-supported solutions and evaluating its capital investments. Its capital investments audit will ensure the company can grow competitively within the Canadian market. 

CEO Michael Garcia emphasized the company’s focus on ensuring its success if trade barriers between the US and Canada persist. 

“We are taking a measured and disciplined approach to evaluating the implications of sustained trade barriers,” Garcia said in a statement .  

He explained that he envisions Algoma Steel as an essential part of Canada’s national best interest.  

“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,” he said.  

Garcia continued, “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.” 

US President Donald Trump declared a national emergency “posed by illegal aliens and drugs, including deadly fentanyl…” under the International Emergency Economic Powers Act (IEEPA) in February. The declaration called for 25% tariffs on Canadian goods including steel.  

Since then, negotiations between the two countries have been a series of fits and starts with little momentum.  

Beginning Aug. 1, non-exempt Canadian imports to the US will be subject to a 35% tariff.

At present, the separate US tariffs on Canadian steel and aluminum stand at 50% under the Section 232 statutes.