Ottawa’s Steel Quotas Fall Short, Says Algoma Chief
As Canada moves to cap foreign steel imports, Algoma Steel CEO Michael Garcia warns the effort is too little, too late to counter the U.S. trade war led by President Donald Trump.
This week, Prime Minister Mark Carney announced that steel imports from countries without free trade agreements—like China, India, and Turkey—will be limited to 2024 levels. Any shipments beyond that quota will face a steep 50% tariff.
While Ottawa touts the move as protective, Garcia sees it differently.
“It’s a good first step,” he said. “But it won’t change the fundamental problem we’re facing.”
Foreign Steel Already Dominates the Market
Garcia argues that limiting imports to 2024 levels won’t reverse the damage. In recent years, cheap foreign steel has made up nearly two-thirds of Canada’s steel market, making it difficult for domestic players to compete—especially with the U.S. market now largely cut off due to doubled tariffs under Trump.
Algoma, headquartered in Sault Ste. Marie, Ontario, is one of Canada’s three largest steel producers. It has been trying to increase its share of the Canadian market after being squeezed out of the U.S. by punitive trade policies.
Garcia had previously urged Ottawa to cut foreign steel access to just 25% of 2024 levels. He also called for restrictions on nations with free trade agreements, such as the EU, South Korea, and Vietnam, which he claims are “dumping” artificially low-priced steel into Canada.
Industry Divided on Ottawa’s Approach
Not everyone in the steel sector shares Garcia’s concern. Jim Ritchie, head of Vancouver-based steel distributor Cascadia Metals Ltd., believes Ottawa is playing a difficult hand wisely.
“Carney’s trying to protect the economy while negotiating with Trump,” Ritchie said.
He appreciates that Ottawa didn’t go too far with its restrictions, as many of his 4,000 Canadian clients rely on foreign steel for specialty products. However, he did express frustration about the added bureaucracy.
Ritchie has already created a department to comply with last year’s “melt and pour” regulations—which require steel to be traceable to its origin. Now, the quota system will force him to set up bonded storage yards, increasing operational costs and red tape.
The Bigger Picture: A Fragile Industry at Risk
Despite these varying perspectives, Garcia insists the systemic vulnerabilities in Canada’s steel sector must be addressed. He believes foreign suppliers now control too much of the domestic supply chain.
“We need to look at this long-term—over 10, 20, even 30 years,” he said.
“For strategic and economic security, Canada’s steel demand should be met mostly by Canadian mills.”
At this week’s G7 Summit in Kananaskis, Carney promised progress, saying he and Trump aim to strike a trade and security deal within 30 days. Yet Garcia remains skeptical that even a swift resolution will undo years of imbalance.
Stay tuned to Maple Wire for real-time updates on Canada’s trade strategy and steel sector resilience.
