OTTAWA (Reuters) -Canada’s government is to provide C$400 million ($287.13 million) in financial support for Algoma Steel under its large enterprise tariff relief scheme, Jobs Minister Patty Hajdu said on Monday. The company has been one of the large steel enterprises worst hit by the 25% tariffs U.S. President Donald Trump slapped on Canadian imported […]
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Canada announces C$400 million financial aid for Algoma Steel
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OTTAWA (Reuters) -Canada’s government is to provide C$400 million ($287.13 million) in financial support for Algoma Steel under its large enterprise tariff relief scheme, Jobs Minister Patty Hajdu said on Monday.
The company has been one of the large steel enterprises worst hit by the 25% tariffs U.S. President Donald Trump slapped on Canadian imported steel, a duty he later cranked up to 50%.
The loan will help Algoma Steel, which employs around 2,500 people in Ontario, continue operations, transition to a business model less reliant on the U.S., and limit disruption to its workforce, the government said in a statement.
The government of Ontario will also provide C$100 million in support, 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.
Canada’s finance minister Francois-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 countermeasures. It complements a slew of other tariff-related measures that the federal government has announced for the Canadian steel industry.
($1 = 1.3931 Canadian dollars)
(Reporting by Promit Mukherjee; Editing by Jan Harvey)