Canadian Steel Maker Algoma Announces 1,000 Job Layoffs Linked to Trump Tariffs

In an effort to offset losses brought on by US tariffs imposed by President Donald Trump, Canadian steel manufacturer Algoma Steel Group plans to close its blast furnace in northern Ontario and lay off 1,000 employees, or roughly 40% of its workforce. According to a Bloomberg article, the Sault Ste. Marie-based business is also thinking of closing its coke plant in order to concentrate entirely on producing steel in early 2026 using electric-arc furnaces.

What Forced Algoma to Take this Harsh Step?

Algoma said that the Trump administration's decision to impose 50% tariffs on foreign steel had negatively impacted its ability to access the cross-border market. According to firm spokesperson Laura Devoni, who was cited by Bloomberg, Trump's tariffs have drastically reduced our access to the US market and fundamentally changed the competitive landscape.

The business also stated that it will keep pushing for a fair and competitive trade environment for Canadian steel and that this change is required to safeguard Algoma's future against these unusual and outside market factors. Additionally, Algoma indicated that the layoffs will start on March 23 of the next year. According to Bloomberg, sales of Canadian steel producers fell by 13% in the third quarter after tariffs were imposed.

Canadian Government’s Extended Support to Algoma

The Canadian and Ontario governments also provided Algoma with emergency loans totalling C$500 million as the firm struggled. Currently employing over 2,500 people, Algoma has received government backing despite the layoffs and its challenging circumstances. Melanie Joly, the Canadian Industry Minister, reaffirmed her support for Algoma on December 1st, stating in Parliament that the government would keep assisting Algoma workers impacted by the White House's unreasonable tariffs.  In these challenging times, Joly also promised to continue helping the steel manufacturer create new goods and reach new markets.