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.
