Latest news with #CanadianSteelIndustry
CBC
6 hours ago
- Business
- CBC
Algoma Steel applies for $500M federal loan as it faces U.S. tariffs
Algoma Steel has applied for a $500-million loan from the federal government to help the Sault Ste. Marie mill as it faces 50 per cent tariffs on Canadian steel exports to the United States. In a news release, the company is "concerned with the significant impact" the tariffs are having on its operations and outlook. The loan application is through the federal Large Enterprise Tariff Loan program, established to soften the blow of U.S. tariffs imposed on certain industries. "We are taking a measured and disciplined approach to evaluating the implications of sustained trade barriers," said Algoma Steel CEO Michael Garcia in a news release. "We continue to call for timely, prudent policy support to ensure Canadian steelmakers can remain viable contributors to the national interest. A strong Canadian steel industry is essential to Canada's economic strength, environmental goals, and national security. With the right frameworks in place, we are confident Algoma will emerge from this period as a vital part of Canada's nation-building agenda." In the news release, Algoma Steel noted it is Canada's only independent and publicly owned steelmaker, and the country's only producer of steel plate. The company is close to completing a $900-million upgrade to its operations in Sault Ste. Marie with the construction of an electric arc furnace, which will significantly reduce emissions. "Algoma has sufficient resources on hand to manage its liquidity over the near term," the news release said. "However, given the ongoing uncertainty caused by the U.S. tariffs resulting in a structural imbalance in the Canadian market, the company is considering various alternatives to bolster liquidity." Targeted support for the steel industry In a statement to CBC News, John Fragos, a spokesperson for the Minister of Finance and National Revenue, did not directly address Algoma Steel's loan application. "Our government is working in lockstep with all its partners, including provincial and territorial governments, industry leaders, union representatives and stakeholders to respond in real time to tariffs and the impact they are having on Canada's businesses and workers," Fragos said in the statement. "In March this year, our government unveiled the Large Enterprise Tariff Loan initiative, a new $10 billion financing facility to support Canadian companies through current and potential tariffs and countermeasures – and provide certainty and stability amid persistent uncertainty." Fragos said the terms of the program were revised on July 16 to provide more targeted support for Canada's steel industry. "Together we will do what is necessary to protect our steel industry and the many Canadian workers who are helping build our country," he said.
Al Jazeera
16-07-2025
- Business
- Al Jazeera
Canada introduces tariffs on trade partners to protect domestic industries
Canadian Prime Minister Mark Carney has said that Canada will introduce a tariff rate quota on countries it has free trade agreements with, excluding the United States, in order to protect its domestic steel industry. Carney announced the new measures on Wednesday. The plan includes a 50 percent tariff that will apply to imports from relevant countries that surpass the 2024 volumes, though Canada will honour existing arrangements with its United States-Mexico-Canada Agreement (USMCA) trade partners, Carney said. Canada will implement additional tariffs of 25 percent on steel imports from all countries containing steel melted and poured in China before the end of July. Carney is responding to complaints from the domestic industry, which had said that other countries are diverting steel to Canada and making the domestic industry uncompetitive due to US tariffs. The Canadian steel industry had asked the government to introduce tougher anti-dumping measures to protect the domestic industry. US President Donald Trump increased import duties on steel and aluminium to 50 percent from 25 percent earlier this month. Canada is the top seller of steel to the US. Carney also said domestic steel companies would be prioritised in government procurement, and he introduced a fund of one billion Canadian dollars ($730m) to help steel companies advance projects in industries such as defence. 'These measures will ensure Canadian steel producers are more competitive by protecting them against trade diversion resulting from a fast-changing global environment for steel,' Carney said on Wednesday. For countries without free trade agreements with Canada, the government lowered the tariff-free quota to 50 percent of 2024 volumes from 100 percent previously. Above the quota, imports will also face a 50 percent tariff. Catherine Cobden, president and CEO of the Canadian Steel Producers Association, in an interview with broadcaster CBC, said the timing wasn't sufficient for domestic steelmakers confronting a crisis. 'This is something we should have been doing all along, but it's fantastic to see that we are making progress,' Cobden said. In a separate statement, Canadian steel maker Evraz said it has filed a complaint against steel imports from Mexico, the Philippines, South Korea, Turkiye and the US, against unfairly priced imports of oil country tubular goods.
Reuters
16-07-2025
- Business
- Reuters
Canada announces tariffs on some trade partners to protect domestic industry
TORONTO, July 16 (Reuters) - Prime Minister Mark Carney on Wednesday said Canada will introduce a tariff rate quota for countries with which it has free trade agreements, excluding the United States, to protect the domestic steel industry. A 50% tariff will apply to imports from these countries that surpass the 2024 volumes, though Canada will honor existing arrangements with its United States-Mexico-Canada Agreement trade partners, Carney said. Canada will implement additional tariffs of 25% on steel imports from all countries containing steel melted and poured in China before the end of July. Carney is responding to complaints from the domestic industry, which had said that other countries are diverting steel to Canada and making the domestic industry uncompetitive due to U.S. tariffs. The Canadian steel industry had asked the government to introduce tougher anti-dumping measures to protect the domestic industry. U.S. President Donald Trump increased import duties on steel and aluminum to 50% from 25% earlier this month. Canada is the top seller of steel to the United States. Carney also said domestic steel companies would be prioritized in government procurement, and he introduced a C$1 billion fund to help steel companies advance projects in industries such as defense. "These measures will ensure Canadian steel producers are more competitive by protecting them against trade diversion resulting from a fast-changing global environment for steel," Carney said on Wednesday. For countries without free trade agreements with Canada, the government lowered the tariff-free quota to 50% of 2024 volumes from 100% previously. Above the quota, imports will also face a 50% tariff. Catherine Cobden, president and CEO of the Canadian Steel Producers Association, in an interview with the CBC, said the timing wasn't sufficient for domestic steelmakers confronting a crisis. "This is something we should have been doing all along, but it's fantastic to see that we are making progress," Cobden told the CBC. In a separate statement, Canadian steel maker Evraz said it has filed a complaint against steel imports from Mexico, the Philippines, South Korea, Turkey and the United States, against unfairly priced imports of Oil Country Tubular Goods.
National Post
16-07-2025
- Business
- National Post
Canada to target steel originating from China with new tariffs
OTTAWA — Steel originating in China will be subjected to higher tariffs to try and prevent steel dumping amid U.S. President Donald Trump's ongoing global trade war, Prime Minister Mark Carney said Wednesday. Article content The prime minister toured a steel manufacturing company in Hamilton before announcing a suite of measures to protect the Canadian steel industry. Article content Those include a new 25 per cent tariff on all steel products that contain metal melted and poured in China by the end of the month. Article content Article content Canada will also impose import quotas based on how much steel was imported from each country in 2024, with countries that don't have a free-trade agreement with Canada already in place impacted more than those that do. Article content Article content Carney said Canada's steel industry will be among the most impacted by the ongoing global rearrangement of markets because it is one of the most open in the world for steel and the industry must be protected. Article content 'Imports supply almost two-thirds of current Canadian consumption of steel, compared to less than one-third for the United States and less than one-sixth for the European Union,' Carney said. Article content 'Over time, we've become too dependent on the United States as our biggest customer with more than 90 per cent of our steel exports going south of the border,' he added. Article content The prime minister said Canada must rely more on 'Canadian steel, for Canadian projects.' Article content Carney says there are no immediate changes to U.S. counter tariffs as Canada continues to seek a new economic deal with Trump by Aug. 1. Article content Article content Other supports for the steel sector include $70 million to provide employment insurance and retraining for up to 10,000 steelworkers, prioritizing Canadian steel in public projects and making it easier for steel companies to get low interest financing through the Large Enterprise Tariff Loan program. Article content
