A steelworker is seen on the job at the ArcelorMittal Dofasco plant in Hamilton, Ontario, on Wednesday, March 12, 2025. (Photo: Nathan Denette / The Canadian Press)
In a tough hit to Canada’s steel industry, ArcelorMittal Long Products Canada has announced the shutdown of its wire drawing mill in Hamilton, leaving 153 workers without jobs. This marks yet another setback for the struggling sector already grappling with foreign competition, sluggish demand, and steep U.S. tariffs.
The steel giant plans to shift operations to its Montreal site, a move the company says is essential given the difficult market conditions and rising imports. Though ArcelorMittal didn’t directly blame the 50% U.S. tariffs on Canadian steel for the closure, it pointed to the broader economic strain the industry is facing.
"Even with our best efforts, we couldn’t overcome the economic challenges and the influx of imported steel. The current market simply isn’t sustainable for all our operations," said company spokesperson Jean-Philippe Grou.
The news came after thorough internal discussions, with the company now promising to support affected employees through the transition.
Union leader Mike Hnatjuk, president of United Steelworkers Local 5328, confirmed the plant had been under pressure for a while. He cited cheap steel imports from China and intense tariff impacts as contributing factors. Although he believes the U.S. tariffs dealt a severe blow, he acknowledged the company hinted at a possible closure even if those duties hadn’t been imposed.
“There was a strong chance this would’ve happened anyway,” Hnatjuk admitted. He added that the plant’s dependence on Canada’s auto sector—another industry facing tariff troubles—only worsened the situation.
Hnatjuk expects to begin discussions with ArcelorMittal about a closure agreement in the coming week. He said the mill is scheduled to cease operations by month-end. “We have clear clauses in our collective agreement. We’re counting on the company to follow through, and we’ll be pushing to secure the best outcome for our members.”
Hamilton Mayor Andrea Horwath expressed her concern over the sudden job losses. “This is a heartbreaking moment for our community,” she said. “It’s a reminder of why the federal government must act now to protect Canadian workers.”
In response to the closure, the Canadian Steel Producers Association has renewed calls for Ottawa to reintroduce retaliatory tariffs against the U.S. after Washington doubled its duties on Canadian steel and aluminum to 50% last week.
The legal battle over those tariffs continues. A U.S. federal appeals court recently upheld the temporary stay that keeps former President Trump’s global tariffs in effect while the case proceeds—delaying any immediate relief for Canadian producers.
The association says the sector has already shed over 700 jobs since the initial 25% tariffs were introduced in March.
Besides pushing for U.S. retaliation, the industry group is urging Canada to slap new tariffs on steel from China, claiming the country unfairly supports its producers.
Stéphane Brochu, CEO of ArcelorMittal Long Products Canada, said the shutdown was a difficult but necessary move. “It helps us streamline operations and maintain our edge in the highly competitive wire drawing business,” he stated.
The company employs over 2,000 people across multiple sites in Quebec, producing steel for use in construction and the automotive industry.
