Algoma Steel to receive $500 million in federal, Ontario loans

Playing null of undefined

CTV National News: Ottawa bails out one of Canada’s major steel companies impacted by tariffs

CTV National News: How will Ottawa’s $10B budget to aid companies affected by tariffs be allocated?

Algoma Steel loan is 'first of its kind' as Ottawa announces support for sector

‘Definition of insanity’: Poilievre on Liberal deficit spending

Projects to support domestic steel market ‘are not there yet’

‘Steel is the backbone of our country’: Government announces $500M in tariff relief for Algoma Steel

Ontario-based Algoma Steel Group Inc. will receive $500 million in federal and provincial loan assistance to help reorient its business to cope with the impact of U.S. tariffs.

Ottawa’s $400 million in financial assistance will come from the Large Enterprise Tariff Loan program. The Ontario government will also provide $100 million to the Sault Ste. Marie, Ont.-based company.

The federal government said in a statement the impact of U.S. tariffs on the steel sector is “profound.”

Ottawa introduced the $10-billion financing program in March to support companies affected by tariffs.

The loans are to help Algoma Steel continue operations, limit disruption to its workforce and move to a business model that isn’t as reliant on the U.S.

Algoma CEO Michael Garcia said in a release that U.S. President Donald Trump’s ongoing 50 per cent steel tariffs have effectively closed the American market to Canadian steel.

That has made some of Algoma’s existing operations unsustainable and pushed up timelines for the company to transition to electric arc furnace steelmaking — typically a more energy efficient process than traditional blast furnaces. Algoma expects this transition to cost $987 million by completion.

That turnaround is also expected to help Algoma produce more of the kind of steel Canadian industry needs.

Ottawa has pushed to include more domestic steel in Canadian infrastructure and defence projects in a bid to support the beleaguered sector.

Industry Minister Mélanie Joly said in a statement that the Algoma loan was about “building resilience” in Canada’s steel industry for decades to come.

The federal government said Algoma currently employs some 2,500 full-time workers.

— with files from Anja Karadeglija

This report by The Canadian Press was first published Sept. 29, 2025.