Government of Canada acts to protect Canadian steel jobs, announces support to an industry leader

From: Department of Finance Canada

News release

September 29 - Sault Ste. Marie, Ontario - Department of Finance Canada

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.

Today, the Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario and Terry Sheehan, Member of Parliament for Sault Ste. Marie—Algoma, on behalf of the Honourable François-Philippe Champagne, Minister of Finance and National Revenue, alongside Will Bouma, Parliamentary Assistant to the Minister of Northern Economic Development and Growth for Ontario, and Bill Rosenberg, Member of Provincial Parliament for Algoma—Manitoulin, announced that the federal and provincial governments have entered into binding term sheet with Algoma Steel Inc. to provide financial support.  

This term sheet would provide $400 million in financial assistance through the Large Enterprise Tariff Loan facility to help Algoma Steel Inc. continue operations, transition to a business model less reliant on the United States, and limit disruption to its workforce. The Government of Ontario is providing an additional $100 million to Algoma under the same terms of the federal government’s financing.

The Canadian steel industry is vital to Canada's economy and security, supporting tens of thousands of jobs and driving growth across manufacturing, construction, and energy sectors. At this transformative moment, it is important that Canada shifts from reliance to resilience – using domestic steel to protect the country’s sovereignty through historic investments in defence, grow its industries, export energy, and build one strong Canadian economy. 

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

“Steel is the backbone of a strong Canada. 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. We are building the foundations for a stronger country.”

- The Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario

“Investing in Canada’s steel industry is investing in the strength of our regional economies and the future of our national prosperity. By supporting Algoma Steel, we’re securing the long-term viability of a cornerstone operation in Sault Ste. Marie and reinforcing thousands of good-paying jobs that form the backbone of the community. This is about building resilience, creating opportunity, and ensuring Canadian steel continues to power our economy for generations to come.”

- The Honourable Melanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions

“Algoma Steel is a significant part of the economy in Northern Ontario and a major player in the manufacturing sector. The Ontario government is supporting Algoma Steel and its workers so it can remain resilient and competitive in the face of U.S. tariffs and a changing global market. We want to see the company continue as an economic pillar in the North that drives growth, jobs and opportunity well into the future.”

- The Honourable George Pirie, Minister of Northern Economic Development and Growth for Ontario

Building Canada strong means using Canadian steel to build homes, bridges, transit infrastructure, and the clean economy of tomorrow. Our government is actively strengthening our domestic production capacity in the steel sector through the supports announced today in order to meet this generational moment.

- Terry Sheehan, Member of Parliament for Sault Ste. Marie—Algoma, Ontario

Quick facts

  • In March 2025, the government announced the creation of the Large Enterprise Tariff Loan (LETL) facility, a $10 billion financing facility to support Canadian companies affected by actual or potential tariffs and countermeasures.

  • In July 2025, the government announced LETL will be updated to expand eligibility and provide lower cost financing to firms in the steel industry. On September 5, the government announced updates to the LETL facility to extend these terms to firms in other sectors.

    • Amendments include reducing the minimum annual revenue requirement from $300 million to $150 million, reducing the minimum loan size from $60 million to $30 million, extending the loan maturity from 5 to 7 years, reducing the initial interest rate, and requiring companies to prioritize worker retention.

  • For more than a century, Algoma Steel has been a valued partner for industries including automotive, construction, energy, and defence. Based in Sault Ste. Marie, Ontario, Algoma provides approximately 2,500 full-time jobs.  

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Contacts

Media may contact:

John Fragos
Press Secretary
Office of the Minister of Finance and National Revenue
John.Fragos@fin.gc.ca

Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000

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2025-09-29