OTTAWA, CANADA Sept 29, 2025 – Prime Minister Mark Carney’s government announced a C$400 million financial aid package for Algoma Steel on Monday, September 29, 2025, as part of a broader strategy to shield the Canadian steel industry from U.S. tariffs and protect thousands of jobs. The support, delivered through federal agencies, is a component of a $10 billion financing facility launched earlier this year to assist large enterprises facing trade challenges.
The aid aims to help Algoma Steel adapt its operations and maintain competitiveness amid ongoing global steel trade tensions. U.S. tariffs, combined with Chinese overcapacity, have significantly impacted Canadian producers, with Algoma reporting a 23% decline in quarterly earnings since the tariffs were imposed. The financial package is designed to prevent trade diversion and stabilize the domestic market, aligning with Carney’s administration’s efforts to address Canada’s dual role as a major steel exporter and importer.
In addition to the C$400 million, the government is committing $1 billion through the Strategic Innovation Fund to bolster steel industry competitiveness and support worker retraining programs. These measures reflect Canada’s vulnerability in the global steel market and its response to recent adjustments in counter-tariffs on steel and aluminum, prompted by U.S. trade actions.
However, the aid package’s structure as a conditional loan, rather than a direct bailout, has raised concerns about potential World Trade Organization challenges. Analysts caution that while the move aims to navigate international trade disputes carefully, it could still face scrutiny from global trade bodies.
As Canada fortifies its steel sector, the international community watches closely, with the outcome of these efforts critical to the industry’s resilience in an increasingly volatile trade landscape.