On Monday, December 1, 2025, Algoma Steel announced plans to lay off about 1,000 workers—over one-third of its Ontario-based workforce—citing severe financial strain from unprecedented 50% tariffs imposed by the United States earlier this year.
Headquartered in Sault Ste. Marie, Algoma Steel is one of Canada’s leading integrated steel producers and a major regional employer. The US duties have sharply limited its access to America’s market, fundamentally altering the competitive landscape and squeezing margins. The job cuts are scheduled to take effect on March 23, 2026.
In September, the company secured CA$500 million in federal and provincial loans to help weather the tariff impact. Ontario’s Minister of Economic Development, Job Creation and Trade, Vic Fedeli, said the province is setting up retraining programs for laid-off workers. He also urged the federal government to accelerate procurement of Ontario steel for pipelines, infrastructure and defense projects.
This development highlights growing trade tensions between Canada and the US steel sectors. As the global steel market adapts, industry observers will watch whether policy measures can soften the blow for producers and their communities.
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Canadian steelmaker to lay off 1,000 workers amid U.S. tariff pressure
cgtn.com
