The Canadian government has revealed a $400 million financial aid package for Algoma Steel under the large enterprise tariff relief program, as stated by Jobs Minister Patty Hajdu on Monday. This funding is intended to support Algoma Steel Inc. in sustaining its operations, transitioning to a more diversified business model, and minimizing disruption to its workforce, according to an official government announcement.
Additionally, the Ontario government has committed to providing $100 million in support for Algoma Steel. Minister Hajdu emphasized the importance of ensuring the prosperity of workers and businesses amidst global trade uncertainties and tariffs, positioning them for success in the future economy.
Finance Minister François-Philippe Champagne, overseeing the distribution of financial aid through federal agencies, highlighted that the assistance would assist Algoma in navigating the challenges posed by U.S. tariffs. He stressed that the investment aims to help the company adjust its operations, enhance competitiveness, and safeguard jobs.
The loan forms part of a $10 billion financing facility introduced in March to aid large corporations in combating tariffs and trade countermeasures. This initiative complements various other measures implemented by the government to support the Canadian steel industry in addressing tariff-related issues.