Latest news with #CanadianSteelProducersAssociation
CTV News
5 days ago
- Business
- CTV News
Algoma Steel seeking $500M in federal support amid ongoing concern over U.S. tariffs
Algoma Steel says it is seeking a large loan from the federal government to ensure its survival in the face of huge tariffs being imposed by the United States. Algoma Steel Group Inc. is seeking $500 million in federal support as the company faces continued uncertainty from U.S. tariffs on Canadian steel. The Sault Ste. Marie, Ont.-based steel producer said Thursday that it applied for the funding under the Large Enterprise Tariff Loan program, announced by Ottawa in March to support companies affected by tariffs and countermeasures. 'We are taking a measured and disciplined approach to evaluating the implications of sustained trade barriers,' said chief executive Michael Garcia in a statement. 'We continue to call for timely, prudent policy support to ensure Canadian steelmakers can remain viable contributors to the national interest.' The company says it remains concerned with the 'significant impact' U.S. tariffs are having on its operations and outlook. The U.S. doubled its steel and aluminum tariffs to 50 per cent in June, a level the Canadian Steel Producers Association has said effectively shuts it out of the market. Last year, Canadian steel producers exported just over half of their production, with over 90 per cent of it going to the U.S. Algoma says it has enough capital in the near term, but given the uncertainty created by tariffs it is looking at various ways, including government support, to boost its liquidity. It said the capital boost would help give it room to diversify its customer base as it explores potential investments that align with long-term domestic demand from industries like defence and construction. The amount of additional financing it could seek will partly depend on the duration and severity of the trade dispute and how much the Canadian steel market 'remains exposed to unfairly priced imports,' it said. The federal government has already moved to reduce steel imports that the industry says are unfairly subsidized, especially from China. The government imposed 25 per cent tariffs on Chinese steel products last fall, while last week it announced increased protection measures, including 50 per cent tariffs on steel imports above certain thresholds, and a 25 per cent surtax on imports that contain steel that originated in China. The added supports announced July 16 also included revised terms for the $10 billion Large Enterprise Tariff Loan program to allow targeted support for the steel industry. Changes include reducing the proposed interest rate, extending the loan maturity, enabling the government to hold equity in companies, as well as requiring companies to prioritize worker retention. At the time, the Canadian Steel Producers Association welcomed the supports, which also included other financial supports and explicit prioritization of domestic steel in federal projects. 'We appreciate the government's support as the consequences are devastating from the unjustified trade action by the United States administration,' said chief executive Catherine Cobden in a July 16 statement. Algoma which had about 2,800 employees at the end of last year, bills itself as Canada's only independent and publicly-owned steelmaker, and says it is the only Canadian producer of steel plate. The company reported a net loss of $24.5 million last quarter compared with a $28 million profit a year earlier. The company listed lower pricing, linked to a drop in demand because of trade uncertainty, along with higher input costs as major factors in the drop. The company is almost done a $900 million project to switch to electric arc furnace steelmaking that should slash emissions by 70 per cent. The project was supported by $420 million in federal funding. --- Ian Bickis, The Canadian Press This report by The Canadian Press was first published July 24, 2025.
National Post
5 days ago
- Business
- National Post
Trump's steel tariffs against Canada have been working just how he wants
For the hundreds of Canadian steelworkers who lost their jobs this year amid President Donald Trump's trade war, talk of reaching a trade deal between Canada and the U.S. is coming too little, too late. Article content For Trump, the effects — driving down imports, boosting the U.S. steel industry and winning concessions from Canada — seem to be getting him what he wants. Article content Initially faced with a 25 per cent tariff on exports to the U.S., which ballooned to 50 per cent in June, Canadian steel is desperate for a resolution. Trump imposed the levies under Section 232 of the Trade Expansion Act, declaring steel imports a threat to national security and citing the need to protect American industry. His rationale was that curbing imports would reduce supply and ramp up prices, giving U.S. steel additional revenue to invest in strengthening domestic production. Article content Article content Negotiating teams are staring down an Aug. 1 deadline, when Trump said he'll be hitting Canada with yet more tariffs — on top of the steel, aluminum, lumber, copper, autos, and energy already being whacked, as well as any goods not exempted by the U.S.-Mexico-Canada trade agreement (USMCA). Article content Article content So far, the Canadian steel industry has been one of the hardest hit by Trump's tariffs, and it's bracing for things to get uglier. Article content Article content 'By the end of May, before we even hit the 50 per cent tariffs, we saw a 30 per cent decline in production across the country,' said Catherine Cobden, president and CEO of the Canadian Steel Producers Association (CSPA). She doesn't have the June numbers yet, but she expects it be 'much worse.' Article content Article content Canadian producers can't afford to absorb the 50 per cent tariff on six million tonnes of production, the amount that was destined for the U.S. market and is now subject to the levy, Cobden explains. Article content While some analysts expected the U.S. market to keep buying heavily taxed Canadian steel to satisfy demand until domestic production increased to fill the gap, that's not playing out in practice. At least not yet.
Vancouver Sun
5 days ago
- Business
- Vancouver Sun
Trump's steel tariffs against Canada have been working just how he wants
For the hundreds of Canadian steelworkers who lost their jobs this year amid President Donald Trump's trade war, talk of reaching a trade deal between Canada and the U.S. is coming too little, too late. For Trump, the effects — driving down imports, boosting the U.S. steel industry and winning concessions from Canada — seem to be getting him what he wants. Initially faced with a 25 per cent tariff on exports to the U.S., which ballooned to 50 per cent in June , Canadian steel is desperate for a resolution. Trump imposed the levies under Section 232 of the Trade Expansion Act, declaring steel imports a threat to national security and citing the need to protect American industry. His rationale was that curbing imports would reduce supply and ramp up prices, giving U.S. steel additional revenue to invest in strengthening domestic production. About US$7.7 billion ($10 billion) in Canadian steel and iron was exported to the U.S. last year, with the American market worth 90 per cent of Canadian exports. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. While Prime Minister Mark Carney's team has been trying to get the steel tariffs lifted, he has lately tried managing expectations, publicly acknowledging that any trade deal will likely involve tariffs . Negotiating teams are staring down an Aug. 1 deadline, when Trump said he'll be hitting Canada with yet more tariffs — on top of the steel, aluminum, lumber, copper, autos, and energy already being whacked, as well as any goods not exempted by the U.S.-Mexico-Canada trade agreement (USMCA). With the deadline less than a week away, Trade Minister Dominic LeBlanc was in Washington on Thursday for the latest trade discussions. The talks, said one Canadian government source, who spoke on condition of anonymity, ' have been volatile.' So far, the Canadian steel industry has been one of the hardest hit by Trump's tariffs, and it's bracing for things to get uglier. 'By the end of May, before we even hit the 50 per cent tariffs, we saw a 30 per cent decline in production across the country,' said Catherine Cobden, president and CEO of the Canadian Steel Producers Association (CSPA). She doesn't have the June numbers yet, but she expects it be ' much worse.' Canadian producers can't afford to absorb the 50 per cent tariff on six million tonnes of production, the amount that was destined for the U.S. market and is now subject to the levy, Cobden explains. While some analysts expected the U.S. market to keep buying heavily taxed Canadian steel to satisfy demand until domestic production increased to fill the gap, that's not playing out in practice. At least not yet. 'The customers on the other end aren't always willing or able to pay, and they expect the steel companies to absorb that,' Cobden said. 'I talk to our members every day, and the situation is that the order books, for those shipments to the United States, are essentially drying up.' So far, the downturn has led to more than 1,000 industry layoffs, said Cobden. She said she now fears that the problems will continue to mount as investment dries up and the industry shrinks. In Trump's first term in 2018, U.S. steel ramped up production after the president hit Canadian imports with tariffs of 25 per cent. It seems to be happening again. According to the American Iron and Steel Institute (AISI), which supports tariffs, U.S. mills have been churning out steel at historic rates. In mid-June, weekly raw steel production hit a three-year peak, and the mill capacity utilization rate has averaged around 76.2 to 78 per cent. If it can be sustained near the 78 per cent mark, it will have exceeded last year's 76.4 per cent, edging closer to the 80 per cent benchmark the Commerce Department wants. Imports, meanwhile, have dropped 6.2 per cent compared to this time last year. The 2018 tariffs also saw U.S. steelmakers invest over US$20 billion in modernization efforts, according to the Steel Manufacturers Association, and created 1,000 American jobs, according to the North American Industry Classification System, while saving others from disappearing. Other studies, however, have questioned the long-term effectiveness of tariffs for job creation. So far this year, the results have been mixed, with a few plant closings and nearly 2,000 job losses mixed with some paused productions and a few summer ribbon-cuttings. Other American industries are taking a hit, though. A lot of things are made with steel, so price increases impact loads of other industries, most notably automotive and housing. With steel-related input prices rising, the average American car price is expected to jump by nearly US$2,000. Housing construction is set to drop by four per cent, according to the National Association of Home Builders. Some analysts question the logic of disrupting supply lines and causing trade uncertainty in a bid to ramp up domestic production. Andrew Hale, a senior policy analyst at Heritage Foundation, acknowledges that the U.S. steel industry needs to modernize, but he says tariffs won't help solve the underlying problems. 'We have horrific regulations and zoning laws,' he says. 'All sorts of things prohibit us from building new blast furnaces for the production of refined steel.' 'There's so much red tape,' he adds, noting that it's impossible to quickly rejig supply lines, as Trump has suggested. Last week, Carney introduced new protections against offshore steel importers, with tariffs on even free-trade partners that export steel to Canada over a set quota, and a 25 per cent tax on any steel from any country – except the U.S. – that was originally melted and poured in China. These measures offer some help to the domestic industry, said the CSPA's Cobden. They're also a signal to Washington, which has long complained that Canada is a back door to the U.S. market for steel from China. But Cobden thinks Canada needs to be ready to hit the U.S. with tariffs, too, if there's no deal before Aug. 1. Still, she's optimistic that this war can't last forever. 'Over time, one has to believe (the U.S.) is going to have to start doing steel trade with somebody. And our hope is it will be Canadian steel companies,' she says. It's time to build big, build bold, and build the strongest economy in the G7 — using Canadian steel. Hale, at the Heritage Foundation, agrees, pointing to the level of integration between the countries and the shortfall in U.S. production. 'We created this whole NAFTA, now USMCA, trade area, and the whole auto industry and other industries were built around that to have this, effectively, single market,' he says. Trump has already pushed back tariff deadlines this year. In April, after he announced sweeping 'Liberation Day' global tariffs, the U.S. bond market collapsed and the S&P 500 plummeted to its lowest level since the pandemic . U.S. Treasury Secretary Scott Bessent pushed for a 90-day tariff pause. Markets are back to historic highs, but Hale says to watch for signs of market volatility again heading into next week. 'If you're going to lift the pause and implement these tariffs and maintain them, then the same thing could happen again,' he said. National Post tmoran@ Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our daily newsletter, Posted, here .
Calgary Herald
5 days ago
- Business
- Calgary Herald
Trump's steel tariffs against Canada have been working just how he wants
Article content For the hundreds of Canadian steelworkers who lost their jobs this year amid President Donald Trump's trade war, talk of reaching a trade deal between Canada and the U.S. is coming too little, too late. Article content For Trump, the effects — driving down imports, boosting the U.S. steel industry and winning concessions from Canada — seem to be getting him what he wants. Article content Initially faced with a 25 per cent tariff on exports to the U.S., which ballooned to 50 per cent in June, Canadian steel is desperate for a resolution. Trump imposed the levies under Section 232 of the Trade Expansion Act, declaring steel imports a threat to national security and citing the need to protect American industry. His rationale was that curbing imports would reduce supply and ramp up prices, giving U.S. steel additional revenue to invest in strengthening domestic production. Article content Article content About US$7.7 billion ($10 billion) in Canadian steel and iron was exported to the U.S. last year, with the American market worth 90 per cent of Canadian exports. Article content Article content Negotiating teams are staring down an Aug. 1 deadline, when Trump said he'll be hitting Canada with yet more tariffs — on top of the steel, aluminum, lumber, copper, autos, and energy already being whacked, as well as any goods not exempted by the U.S.-Mexico-Canada trade agreement (USMCA). Article content Article content Article content Article content So far, the Canadian steel industry has been one of the hardest hit by Trump's tariffs, and it's bracing for things to get uglier. Article content 'By the end of May, before we even hit the 50 per cent tariffs, we saw a 30 per cent decline in production across the country,' said Catherine Cobden, president and CEO of the Canadian Steel Producers Association (CSPA). She doesn't have the June numbers yet, but she expects it be 'much worse.' Article content Canadian producers can't afford to absorb the 50 per cent tariff on six million tonnes of production, the amount that was destined for the U.S. market and is now subject to the levy, Cobden explains. Article content While some analysts expected the U.S. market to keep buying heavily taxed Canadian steel to satisfy demand until domestic production increased to fill the gap, that's not playing out in practice. At least not yet.
Edmonton Journal
5 days ago
- Business
- Edmonton Journal
Trump's steel tariffs against Canada have been working just how he wants
Article content For the hundreds of Canadian steelworkers who lost their jobs this year amid President Donald Trump's trade war, talk of reaching a trade deal between Canada and the U.S. is coming too little, too late. Article content For Trump, the effects — driving down imports, boosting the U.S. steel industry and winning concessions from Canada — seem to be getting him what he wants. Article content Initially faced with a 25 per cent tariff on exports to the U.S., which ballooned to 50 per cent in June, Canadian steel is desperate for a resolution. Trump imposed the levies under Section 232 of the Trade Expansion Act, declaring steel imports a threat to national security and citing the need to protect American industry. His rationale was that curbing imports would reduce supply and ramp up prices, giving U.S. steel additional revenue to invest in strengthening domestic production. Article content Article content About US$7.7 billion ($10 billion) in Canadian steel and iron was exported to the U.S. last year, with the American market worth 90 per cent of Canadian exports. Article content Article content Negotiating teams are staring down an Aug. 1 deadline, when Trump said he'll be hitting Canada with yet more tariffs — on top of the steel, aluminum, lumber, copper, autos, and energy already being whacked, as well as any goods not exempted by the U.S.-Mexico-Canada trade agreement (USMCA). Article content Article content Article content Article content So far, the Canadian steel industry has been one of the hardest hit by Trump's tariffs, and it's bracing for things to get uglier. Article content 'By the end of May, before we even hit the 50 per cent tariffs, we saw a 30 per cent decline in production across the country,' said Catherine Cobden, president and CEO of the Canadian Steel Producers Association (CSPA). She doesn't have the June numbers yet, but she expects it be 'much worse.' Article content Canadian producers can't afford to absorb the 50 per cent tariff on six million tonnes of production, the amount that was destined for the U.S. market and is now subject to the levy, Cobden explains. Article content While some analysts expected the U.S. market to keep buying heavily taxed Canadian steel to satisfy demand until domestic production increased to fill the gap, that's not playing out in practice. At least not yet.
