Ottawa pledges $400M in financial aid for Algoma Steel as tariffs pummel sector

The federal government announced a $400-million financial support for Algoma Steel under its large enterprise tariff relief scheme, Jobs Minister Patty Hajdu said on Monday.

The loan will "help Algoma Steel Inc. continue operations, transition to a business model less reliant on the United States, and limit disruption to its workforce," the government said in a statement.

The Ontario government will also provide a support of $100 million, it said.

"In the face of tariffs and uncertainty around the world, we are ensuring workers and businesses can prosper today and lead in tomorrow's economy," Hajdu said.

Finance Minister François-Philippe Champagne, whose ministry will extend the financial aid through federal agencies, said the support would help Algoma manage the impact of U.S. tariffs.

"This investment is about helping them adapt operations, stay competitive and ... protect [jobs]," he said.

The loan is a part of a $10-billion financing facility announced in March for large companies to help them fight the tariffs and counter-measures. It complements a slew of other tariff-related measures that the federal government has announced for the Canadian steel industry.