Algoma Steel is weighing a return to coal based steelmaking after permanently shutting down its No. 7 blast furnace in January 2026. Despite receiving 500 million dollars in government funding to transition to electric arc furnaces and cut emissions by 70 percent, U.S. tariffs are making traditional production more profitable again. This potential reversal highlights the conflict between climate commitments and geopolitical trade pressures. The company is balancing the need for high margin specialty steel against the operational risks of running two different production platforms simultaneously.
