The primary employer in Sault Ste. Marie, a city in northern Ontario, has secured $500 million in government loans to protect its workforce from U.S. tariffs. Federal Jobs Minister Patty Hadju announced the funding at the steel mill on Monday.
The federal government, through its “large enterprise tariff loan,” is providing Algoma Steel with a $400 million loan, with an additional $100 million coming from the Ontario government under the same terms. The aim of this financial support is to enable the plant to sustain its operations, shift towards a business model less dependent on the United States, and minimize disruption to its employees.
This loan is part of a $10 billion financing facility unveiled in March to assist large companies in combating tariffs and counter-measures. It complements various other measures introduced by the federal government to support the Canadian steel industry in response to tariff challenges.
In July, Algoma Steel had requested a $500 million loan from the government due to the 50% tariffs imposed on Canadian steel exports to the U.S. The company expressed concerns about the substantial impact of these tariffs on its operations and future prospects. Algoma Steel’s CEO, Michael Garcia, emphasized the need for strategic policy support to ensure the resilience of Canadian steelmakers and their crucial role in the country’s economic prosperity, environmental objectives, and national security. The company remains optimistic that with the appropriate strategies in place, Algoma will emerge as a key contributor to Canada’s development objectives.