Layoffs sparked by Trump tariffs—Canadian steel maker Algoma to slash 1,000 jobs, roughly 40% of its staff
Canadian steelmaker Algoma Steel Group is preparing to lay off 1,000 people – about 40% of its staff – and close its blast furnace in northern Ontario to avoid losses from US tariffs imposed by President Donald Trump.
According to the report prepared by BloombergSault Ste. The Marie-based company is also considering shutting down its coke production operation as it plans to focus on steel production using only electric arc furnaces in early 2026.
Tariffs block access to US market
The news follows the Trump administration’s decision to impose 50% tariffs on foreign steel; Algoma said this has severely impacted its ability to access markets across borders.
Company spokeswoman Laura Devoni was quoted as saying Trump’s tariffs “fundamentally change the competitive landscape and sharply limit our ability to access the U.S. market.” Bloomberg.
“This transition is necessary to safeguard Algoma’s future in the face of these extraordinary and external market forces, and we will continue to advocate for a competitive and fair trading environment for Canadian steel,” the company added.
Algoma also confirmed that the announced layoffs will come into effect on March 23 next year.
Bloomberg Canadian steelmakers reported sales fell 13% in the third quarter after the tariffs were implemented.
While Algoma was in trouble, the company also received a C$500 million emergency loan from the Canadian and Ontario governments.
Algoma currently employs about 2,500 people and has found support from the government despite layoffs and its difficult situation.
On Monday, Canadian Industry Minister Melanie Joly doubled down on her support for Algoma, telling Parliament that the government would continue to work with Algoma employees affected by “unfair and unjust tariffs imposed by the White House.”
Joly also promised further support to the steelmaker in developing new products and accessing new markets in these difficult times.
