Algoma Steel CEO Steps Down Amid Financial Struggles and Tariff Pressures

Algoma Steel Group Inc. (ASTL) announced the departure of CEO Michael Garcia as the Canadian steelmaker grapples with mounting losses and a plummeting share price. The company attributed the leadership change to a planned retirement, with CFO Rajat Marwah set to assume the CEO role in January 2026.

U.S. tariffs on Canadian steel products have severely impacted Algoma's financial performance. The company reported a staggering net loss of $485.1 million in Q3 2024, a dramatic increase from the $106.6 million loss recorded in the same period last year. Steel shipments declined 19% year-over-year to 419,173 tons as the 50% U.S. import tariff continues to constrain market access.

Despite receiving $500 million in loan relief from the Canadian government in September, Algoma faces significant headwinds. 'The U.S. steel market remains largely closed to us,' outgoing CEO Garcia noted in his departure statement, underscoring the challenging operational environment.