In 2025, Algoma Steel Inc. (Algoma), a leading Canadian steel manufacturer, confronted renewed US tariffs under Section 232 of the Trade Expansion Act that resulted in a 25 per cent duty on steel imports. The policy shift triggered a CA$24.5 million net loss in the first quarter of 2025, reversing a CA$28 million profit from the previous year. The case explores Algoma’s strategic responses—market diversification, cost optimization through electric arc furnace (EAF) technology, and policy advocacy—amid trade tensions and the global push for decarbonization. Algoma’s case highlights how firms can navigate trade wars through strategic diversification, cost innovation, and policy engagement. The EAF transition exemplifies how industrial decarbonization can align profitability with sustainability.
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