Algoma Steel (ASTL.TO) has paused exports of steel from Canada to the United States until Thursday, when Canadian ministers are expected to meet their U.S. counterparts in Washington, CEO Michael Garcia said.
On Wednesday, in response to US President Donald Trump's tariffs on Canadian made steel and aluminum, Canada, the biggest foreign supplier of steel and aluminum to the United States, announced 25% retaliatory tariffs on goods including steel, aluminum, computers, sports equipment and other products in total.
"So, I think this will give companies like Algoma and other steel producers in Canada an opportunity to acquire new customers and hopefully serve them with Canadian-made steel because now the U.S.-made steel will suddenly be expensive," Garcia said.
He added that steel producers in Canada have been vocal about countermeasures that were needed against tariffs on Canadian-made steel as the United States sells roughly 3.5 million tons of steel to Canada.
Shares of the Canadian steel producer were up 2.6% in midday trade at the Toronto Stock Exchange.
U.S. Commerce Secretary Howard Lutnick and Canadian government officials are expected to meet on Thursday. Algoma will take a call on its export pause to see if the tariff will get adjusted after this meeting, Garcia said.
Steel manufacturers in Canada have said that these tariffs will cause grave concern for Canadian steel workers and have asked the government to support the industry.
Algoma has laid off 20 people in the run-up to the tariffs and said that its future decision on job cuts will depend on its new Canadian customers, underlying market price for steel and the duration of tariffs.
"Obviously, it is not good for the company, and you know, in the long term it is very concerning," Garcia said.
