Algoma Steel Seeks Federal Loan to Foil U.S. Tariffs Impacts

SEATTLE (Scrap Monster): Algoma Steel, a steel manufacturer situated in Ontario, Canada, has asked the federal government to contribute up to $600 million to help the business survive the difficulties caused by the U.S. administration's increasing tariffs. It should be mentioned that the Trump administration boosted the 25% tax on steel and aluminum to 50% in June 2025 after introducing it in March of this year.

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The steel manufacturer has submitted an application for a loan under the Canadian federal Large Enterprise Tariff Loan (LETL) program. It stated that its operations are seriously threatened by the present 50% tariffs on Canadian steel. Since the company sells between 50% and 60% of its steel to the United States, the high U.S. tariffs have caused serious problems for the company.

Algoma Steel CEO Michael Garcia commented on the news, saying the company is assessing the effects of persistent trade obstacles in a methodical and controlled manner. He went on to say that Canada's economic prosperity, environmental objectives, and national security all depend on a robust steel sector.

Algoma Steel stated that it is extremely concerned about the disastrous effects caused by high tariffs, but it also praised the continuous efforts of Canadian government negotiators to achieve a just and long-lasting trade resolution with the United States.