Algoma Steel says it is seeking a large loan from the federal government to ensure its survival in the face of huge tariffs being imposed by the United States.

Algoma Steel Group Inc. is seeking $500 million in federal support as the company faces continued uncertainty from U.S. tariffs on Canadian steel.

The Sault Ste. Marie, Ont.-based steel producer said Thursday that it applied for the funding under the Large Enterprise Tariff Loan program, announced by Ottawa in March to support companies affected by tariffs and countermeasures.

“We are taking a measured and disciplined approach to evaluating the implications of sustained trade barriers,” said chief executive Michael Garcia in a statement.

“We continue to call for timely, prudent policy support to ensure Canadian steelmakers can remain viable contributors to the national interest.”

The company says it remains concerned with the “significant impact” U.S. tariffs are having on its operations and outlook. The U.S. doubled its steel and aluminum tariffs to 50 per cent in June, a level the Canadian Steel Producers Association has said effectively shuts it out of the market.

Last year, Canadian steel producers exported just over half of their production, with over 90 per cent of it going to the U.S.

Algoma says it has enough capital in the near term, but given the uncertainty created by tariffs it is looking at various ways, including government support, to boost its liquidity.