Algoma Steel incurs $10.5 M in tariff-related costs during 1st quarter

Jonathan Migneault · CBC News

· Posted: Apr 30, 2025 7:11 PM EDT | Last Updated: 9 minutes ago

Algoma Steel incurred $10.5 cardinal successful tariff-related costs successful the archetypal 4th of 2025.

But CEO Michael Garcia says the company, which is the largest leader successful the bluish Ontario metropolis of Sault Ste. Marie, remains successful a bully presumption contempt American tariffs connected Canadian steel.

"We precocious announced our information successful squad vigilance, strengthening our presumption successful the Canadian defence proviso chain, and we are encouraged by the national government's renewed absorption connected home subject procurement and infrastructure spending, which we judge volition enactment aboriginal request for our sheet products," helium said during a shareholder gathering connected Wednesday.

In March, U.S. President Donald Trump imposed a 25 per cent tariff connected Canadian alloy and aluminum.

In its quarterly update to shareholders, Algoma Steel said U.S. tariffs could mean a batch much Canadian alloy connected the marketplace connected this broadside of the border, which would mean a driblet successful prices and could wounded the Sault mill's bottommost line.

Algoma Steel reported its consolidated gross for the 4th was $517.1 million, down from $620.6 cardinal successful the prior-year quarter. 

The institution said the diminution was chiefly owed to the driblet successful alloy prices amid weakening marketplace conditions.  

Algoma Steel besides had a nett nonaccomplishment of $24.5 cardinal for the quarter, compared to nett income of $28 cardinal successful the aforesaid 4th past year.

"Our fiscal and operational results were broadly successful enactment with expectations, contempt headwinds from tariff uncertainty and subdued request and pricing successful the alloy market," Garcia said successful a quality release.

In its update to shareholders Algoma Steel said alloy accumulation utilizing its caller electrical arc furnace is expected to commencement sometime this spring.

The institution has invested $823.6 cardinal to physique the furnace, which is expected to chopped emissions by 70 per cent.