Sault Ste. Marie, Canada – Canadian steelmaker Algoma Steel is preparing for the potential impact of steel and aluminum tariffs soon to be imposed by the Trump administration. According to Algoma Steel CEO, Michael Garcia, the company is concerned about the significant financial challenges these tariffs could present.
In an interview with Canadian television network CTV, Garcia explained that local plate and coil prices in the US have already surged by 35 percent and 25-30 percent respectively since January 20. While this price increase has presented a short-term opportunity for Algoma to continue shipping steel to the US with tariffs covered, Garcia emphasized the risks of the 25 percent tariffs on steel and aluminum set to take effect from March 12. He warned, "Assuming the steel price remains where it is now, it would immediately put any business that we're doing in the US under water. It wouldn't make sense for us to continue to ship to the US if we believe that a 50 percent tariff was going to be in place for any significant amount of time."
In response to the financial uncertainty, Algoma has already begun laying off employees as part of a cost-cutting strategy, with the possibility of further layoffs depending on how the tariff situation unfolds.
The move comes after US President Donald Trump announced on February 10 that the US would impose 25 percent tariffs on foreign steel and aluminum imports starting March 12. Canada's steel and aluminum imports from the US officially became subject to these tariffs on March 4.
Amid this trade dispute, Canada filed a formal complaint with the World Trade Organization (WTO) on March 6, challenging the US decision to impose 25 percent tariffs on all non-energy imports and 10 percent tariffs on energy imports from Canada.
Algoma Steel’s future in the US market remains uncertain as both countries continue to grapple with the economic and trade implications of these tariffs.
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