The Canadian government has revealed a substantial financial aid package of $400 million for Algoma Steel under its large enterprise tariff relief program, confirmed by Jobs Minister Patty Hajdu on Monday. The funding is intended to support Algoma Steel Inc. in maintaining operations, transitioning to a more diversified business model, and minimizing disruptions to its workforce, according to an official government statement. Additionally, the Ontario government will contribute $100 million in support.
Minister Hajdu emphasized the importance of ensuring the prosperity of workers and businesses amidst global uncertainties and tariffs to secure a thriving economy both now and in the future. Finance Minister François-Philippe Champagne, responsible for overseeing the financial aid distribution through federal agencies, highlighted that the assistance would enable Algoma to navigate the challenges posed by U.S. tariffs. He underscored that the investment aims to facilitate operational adjustments, enhance competitiveness, and safeguard employment opportunities.
This financial support is part of a $10-billion financing initiative unveiled in March to assist large corporations in mitigating the impact of tariffs and related counter-measures. It complements a series of measures introduced by the Canadian government to support the steel industry in response to tariff pressures.
