Title: Algoma Steel Receives Critical Loans Amid Trade Challenges

OTTAWA — The member of Parliament for Sault Ste. Marie, Terry Sheehan, emphasized the importance of recent financial support for Algoma Steel Group Inc. during a press conference on Wednesday. He stated that U.S. President Donald Trump's tariffs aimed at the steel industry have posed significant challenges, attempting to "wipe Algoma Steel off the map."

Sheehan expressed confidence that the steel plant would endure despite these obstacles. He described the loans from federal and provincial governments as "absolutely critical" for the company's survival. The Canadian government announced on Monday that Algoma Steel will receive a total of $500 million in loans, with $400 million coming from the Large Enterprise Tariff Loan program, part of a $10 billion fund established to alleviate the impact of tariffs. The Ontario government is contributing an additional $100 million.

"The 50 percent tariffs were meant to wipe Algoma Steel off the map. That’s one of (Trump’s) plans, to decimate the steel industry around the world," Sheehan said. He noted that currently, 50 to 60 percent of Algoma's steel production is exported to the United States, making the tariffs unsustainable for the business.

The CEO of Algoma Steel has previously stated that the tariffs have effectively closed the American market to Canadian steel. Sheehan indicated that it may take 18 months to two years for the domestic steel industry to adjust and reduce its reliance on the U.S. market. He believes this transition will ultimately strengthen the industry.

"What we have to do is make sure that our industries have the opportunities to produce those goods, such as steel, aluminum, wood in our major building projects, including retooling and rebuilding our military," he said.

Sheehan also mentioned his intention to propose a new national strategy for the steel industry, aimed at enhancing its resilience in the long term. He reflected on past challenges, stating, "In 2018, unfortunately, the steel industries, quite frankly, didn’t diversify enough and they went back to their old markets — and we saw that movie again."

Looking ahead, Sheehan acknowledged the uncertainty surrounding future U.S. political dynamics but stressed the need for preparedness in the face of potential challenges stemming from Trump's policies.

This report was first published on October 1, 2025.