Ontario Partnering with the Federal Government to Protect Canadian Steelworker Jobs
September 29, 2025
Joint investment will help Algoma Steel respond to impact of U.S. tariffs
On September 29, the Ontario government, in partnership with the federal government, announced an investment of $500 million to help Algoma Steel navigate changing market conditions and the impact of U.S. tariffs targeted at Canada’s steel sector. Through the Protect Ontario Financing Program, the province is providing a loan of $100 million, while the federal government is providing a loan of $400 million to Algoma Steel Inc. through the Large Enterprise Tariff Loan (LETL) facility.
This investment is part of an agreement between the Ontario government, Algoma Steel Inc. and the federal government to ensure Algoma Steel Inc. has the liquidity and flexibility to respond to changing market conditions and trade considerations due to the impacts of U.S. tariffs.
“Working in partnership with the federal government, Ontario is doing its part to protect workers and communities that are being targeted by U.S. tariffs,” said Peter Bethlenfalvy, Minister of Finance. “Moving forward, our government will continue making every effort to use Ontario steel wherever possible, including in our more than $200 billion infrastructure plan, so that we can create new opportunities for Ontario steelworkers that will keep them on the job for years to come.”
This direct support will help Algoma pivot its operations away from U.S. dependent markets and remain a commercially viable and economically stable source of jobs, growth and opportunity in Northern Ontario.
“The Ontario government is supporting industry and protecting Northern Ontario,” said George Pirie, Minister of Northern Economic Development and Growth. “Algoma Steel plays a key role in the North’s economy and the manufacturing sector in Ontario. We are supporting Algoma Steel in the face of U.S. tariffs and changes in the global market so the company can continue to drive growth and economic opportunity in the North.”
This announcement highlights the importance of the Government of Ontario and the Government of Canada working together in the face of the economic threat and impacts of U.S. tariffs to ensure the prosperity and growth of our local industries.
Quick Facts
- Established in 1901 in Sault Ste. Marie, Algoma Steel is transitioning to Electric Arc Steelmaking, marking one of the largest decarbonization projects in Canada.
- Algoma has a strong presence in the North American steel sector, and serves as the largest employer in Sault Ste Marie as well as the second largest private sector employer in Northern Ontario.
- In June 2025, the US government imposed 50 per cent tariffs on steel imports from Canada under Section 232, significantly impacting Canada’s steel industry. As the only independent and publicly traded Canadian steel producer, Algoma Steel Inc. (Algoma) and Northern Ontario are in a unique and particularly vulnerable position.
- As part of the Protect Ontario Financing Program, the province’s loan agreement with Algoma Steel Inc. for $100 million will align with the general terms of the negotiated loan agreement with the federal loan agreement.
- Ontario is the leading province for manufacturing key industrial materials and is the steel-making hub of Canada, home to three large producers with a supply chain that supports 16,500 workers. The steel and aluminum industry is highly integrated and a safe and secure supplier to the broader North American manufacturing sector and the U.S. market
Quotes
“It’s time to build big, build bold, and build the strongest economy in the G7 using Canadian steel. The support announced today will help Algoma, a pillar of Canada’s manufacturing base, manage the financial impact of U.S. tariffs. This investment is about helping them adapt operations, stay competitive, and most importantly protect the jobs and the workers who drive this industry.”
– The Honourable François-Philippe Champagne
Minister of Finance and National Revenue
Related Story
Government of Canada Acts to Protect Canadian Steel Jobs, Announces Support to an Industry Leader
The global trade landscape is rapidly changing, as the United States fundamentally transforms all of its trading relationships. While Canada retains the best overall deal of any U.S. trading partner, with over 85% of our trade tariff-free, the impact on key sectors like steel is profound. That is why the government has introduced targeted measures to support Canada’s steel industry, protect Canadian jobs, and strengthen domestic industrial capacity.
