The Canadian government revealed a $400 million financial aid package for Algoma Steel as part of the large enterprise tariff relief initiative, according to Jobs Minister Patty Hajdu on Monday. The objective of the loan is to assist Algoma Steel Inc. in maintaining operations, transitioning to a business model with less dependence on the United States, and minimizing disruptions to its workforce, as stated by the government. In addition to the federal support, the Ontario government will provide an additional $100 million in aid.
Hajdu emphasized the importance of supporting workers and businesses in the current global climate of tariffs and uncertainty, aiming to ensure their prosperity today and their leadership in the future economy. Finance Minister François-Philippe Champagne, responsible for overseeing the financial aid distribution through federal agencies, highlighted that this assistance will enable Algoma to navigate the challenges posed by U.S. tariffs, facilitating operational adjustments, enhancing competitiveness, and safeguarding jobs.
The loan forms a component of a $10 billion financing facility introduced in March to assist large companies in combating tariffs and associated measures. This initiative complements a series of tariff-related strategies implemented by the federal government to bolster the Canadian steel industry.
