Overview

• Algoma Steel has entered talks with the federal government to secure $400 million–$600 million in financing through the $10 billion Large Enterprise Tariff Loan facility.
• CEO Michael Garcia says the initial term sheet carried high interest rates, steep fees and equity-warrant clauses that would dilute shareholders.
• U.S. President Donald Trump’s March and June tariff hikes, now at 50%, have effectively closed the American market that once absorbed 60% of Algoma’s output.
• As Canada’s last independent primary steelmaker and sole defense-grade plate producer, Algoma maintains sufficient liquidity to manage short-term operating needs.
• The company is ramping up domestic sales in defence and construction sectors and advancing its low-carbon transition to replace lost export revenue.