Canada's tariff talks stall as Algoma's furnace outage adds an industrial shock
Canada-US talks ended without an agreement two days before new duties, while a turbine fault stopped Algoma Steel's electric arc furnace and threatened shipments.
Economics & Markets··Morning
Washington talks end without a deal
According to CP24, the Washington meeting between Canada's chief negotiators and US Trade Representative Jamieson Greer ended without an agreement. Trade Minister Dominic LeBlanc said on his way out that "we're going to continue working. Our job is not yet done." Donald Trump has threatened 50 per cent tariffs on a list of goods running from cement to hockey sticks, with the duties due to take effect on August 19. Greer answered "no comment" to reporters as he left the meeting. Prime Minister Mark Carney, speaking at an announcement in St. John's, said he expects to speak with Trump before Wednesday's deadline, and would not say what a good deal for Canada would look like.[1]
Algoma's electric arc furnace stops
Canadian steelmaker Algoma Steel said, as reported by Kitco News, that an outage at its captive power plant had suspended electric arc furnace operations and could affect future shipment volumes. One turbine unit at the Lake Superior Power facility was taken offline after an abnormal condition was detected, while the remaining units kept running. The company is working with GE Vernova to commission a contracted spare turbine at the site and expects the outage to last no more than 21 days. Its US-listed stock fell 5.3 per cent in pre-market trading.[2]
Backup power and the shipment calendar
An alternative onsite power arrangement being evaluated with Ontario's independent electricity system operator could allow Algoma operations to restart within about 10 days if approved. Finishing and shipping activities are continuing and the company expects no significant impact on committed customer deliveries. While the outage is expected to last no more than 21 days, work with GE Vernova to bring the spare turbine online continues. The electric arc furnace is halted, yet finishing and shipping have not stopped.[2]
