Algoma Steel (NASDAQ:ASTL) just hit the brakes on steel exports to the U.S. as tariffs shake up the market. CEO Michael Garcia sees an openinghigher prices for U.S.-made steel could push Canadian buyers toward local suppliers. But there's a bigger problem: tariffs have dragged steel prices below production costs, squeezing the industry hard. With Canada firing back with its own 25% levies, steelmakers are demanding government support. Investors are on edge as trade tensions escalate, and all eyes are on Thursday's high-stakes meeting between U.S. and Canadian officials.

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For now, Algoma is playing the waiting game. The company has already cut 20 jobs, and more could be on the line if tariffs stay put. Garcia isn't sugarcoating itthis situation is bad news for the long haul. But he's banking on Canada stepping in, arguing that the U.S. and Canada's deeply intertwined steel trade needs a pragmatic fix. A prolonged trade war could trigger layoffs across the sector and ripple through industries that depend on steel, from auto manufacturing to construction.

Despite the turbulence, Algoma is pushing forward with a game-changing move: its shift to electric arc furnace (EAF) steelmaking. Set to kick off next month, this transition slashes emissions, cuts costs, and makes the company more resilient to market swings. If tariffs stick around, Algoma's cost advantage could become a major differentiator. Investors are watching closelyshort-term pain is real, but the long-term play is where things get interesting.