Reeling from high tariffs imposed by U.S. President Donald Trump, Algoma Steel confirmed Monday it has issued layoff notices to about 1,000 workers.
Algoma Steel has begun a painful transition. The Ontario-based company confirmed on Monday that it has issued 1,000 layoff notices, a move directly linked to steep U.S. tariffs that have reshaped the North American steel market. The layoffs will take effect on March 23, 2026, disrupting hundreds of families in Sault Ste. Marie and sending shockwaves through the Canadian steel sector.
U.S. Tariffs Reshape Algoma Steel’s Future
The heart of the crisis lies in the 50 per cent tariffs imposed by former U.S. President Donald Trump. These duties, introduced last summer, severely restricted Algoma Steel’s ability to sell to its largest market — the United States.
Algoma Steel employs around 2,700 workers, and the impact has been profound. “These tariffs have fundamentally altered the competitive landscape,” said spokesperson Laura Devoni. She noted the tariffs made it nearly impossible for the company to compete in the U.S. market.
As a result, Algoma Steel will shut down its blast furnace and coke-making operations in early 2026, ending a long chapter in the company’s history as an integrated steelmaker.
Forced Shift to Electric Arc Furnace Technology
The market pressure has accelerated Algoma Steel’s transition to Electric Arc Furnace (EAF) steelmaking — a shift originally planned for later. Now, the company must complete this transformation a year earlier to stay viable.
Devoni called the layoffs a “difficult decision” but stressed the urgent need for structural change. “This transition is necessary to protect Algoma’s future,” she said, adding that the company will continue advocating for a fair trading environment for Canadian steel.
Government Assistance and Industry Response
In September, federal and provincial governments announced $500 million in loan support to help Algoma Steel adapt. Ottawa will provide $400 million through the Large Enterprise Tariff Loan program, while Ontario will contribute $100 million.
Union leaders described the layoff announcement as heartbreaking.
“This is devastating,” said Bill Slater, president of United Steelworkers Local 2724. With layoffs looming in March, he warned that families face a difficult holiday season.
Slater hopes government funding will be expedited and that an action centre will be operational by late January to support displaced workers.
Ontario Promises Worker Support
Ontario’s Trade Minister Vic Fedeli pledged immediate action. The province will activate a POWER Centre (Protect Ontario Workers Employment Response) to help workers retrain and find employment quickly.
Fedeli highlighted ongoing initiatives like the Buy Ontario Act, which prioritizes Ontario-made steel for government procurement. He urged the federal government to speed up projects that rely on Canadian steel, including pipelines, infrastructure, and defence equipment.
Federal Leaders Commit to Assistance
Sault Ste. Marie–Algoma MP Terry Sheehan said he is in close contact with federal departments to coordinate support. He assured workers that their concerns are being prioritized.
“I will continue to fight tirelessly for you, your families, and our community,” Sheehan said.
Community Impact and Company Commitments
Algoma Steel acknowledged the deep emotional and economic impact on the community. The company stressed its commitment to working with government partners, unions, and local agencies to provide transition assistance.
“We understand how unsettling this news is,” Devoni said, emphasizing that the coming months will focus on supporting affected employees.Despite the immediate challenges, Algoma maintains that the layoffs are necessary for the company’s long-term survival in a drastically changed steel landscape.
