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Algoma Steel suspends steel exports from Canada to the US, CEO states

Algoma Steel suspends steel exports from Canada to the US, CEO states

Michael Garcia, CEO of Algoma Steel, said that the company has suspended exports from Canada to America until Thursday when Canadian Ministers will meet with their U.S. counterparts at Washington.

Garcia, in an interview, said that the tariffs on U.S. Steel will allow Algoma to gain new Canadian customers.

In response to US President Donald Trump’s tariffs against Canadian steel and aluminium, Canada, which is the largest foreign supplier of steel to the United States announced 25% retaliatory duties on goods such as steel, aluminum and computers, sporting equipment, and other products totaling C$29.8 Billion.

Garcia stated that the U.S. steel is now more expensive, and this gives Canadian steel producers an opportunity to serve new customers with Canadian steel.

Steel producers in Canada are vocal about the need for countermeasures against tariffs on Canadian steel, as US steel exports to Canada amounting to approximately 3.5 million tonnes.

The Toronto Stock Exchange saw shares of the Canadian Steel Producer up 2.6% at midday.

On Thursday, U.S. Secretary of Commerce Howard Lutnick will meet with Canadian government officials. Garcia said that Algoma would make a decision on its export suspension after the meeting to determine if tariffs will be adjusted.

Steel producers in Canada have expressed concern that the tariffs would cause serious problems for Canadian workers, and asked the government to help the industry.

Algoma laid off 20 workers in anticipation of the tariffs. It said its decision to cut jobs will be based on the new Canadian customers it has, the steel market price and the length of the tariffs.

Garcia stated that "it is not good for business and it is concerning in the long run." (Reporting and editing by Caroline Stauffer, Mark Porter, and Divyarajagopal)

(source: Reuters)