SAULT STE. MARIE, Ontario — Canada’s largest flat-rolled steel producer, Algoma Steel, is reeling under the weight of escalating U.S. tariffs on Canadian steel and aluminium, and has reportedly issued layoff notices to a significant portion of its workforce.
Industry sources say the company has already laid off approximately 200 employees — roughly 10 percent of its professional and technical staff since tariffs took effect earlier this year. With steel exports to the U.S. now largely blocked, Algoma’s CEO warned that even more layoffs may come if alternative Canadian customers are not secured.
The tariff situation has been painful: U.S. import duties under Section 232 have soared to 50%, significantly restricting access to America — which historically has been Algoma’s largest market. As a result, in the third quarter of 2025 the company reported a major drop in revenue and is accelerating a shift away from traditional coil production toward low-carbon plate steel made with electric arc furnace (EAF) technology.
In September, Algoma secured CAD$500 million in liquidity support from the federal and Ontario governments to help cushion the blow, stabilize operations, and support its ongoing EAF transformation. But despite that lifeline, the new economic landscape remains tough: domestic demand alone is unlikely to replace lost export markets, and many workers remain uncertain about their jobs’ futures.
Ontario has already seen a broader manufacturing slump, with the province losing tens of thousands of jobs in 2025 in large part due to tariff-driven disruptions across the steel and manufacturing sectors.
For workers in Sault Ste. Marie and surrounding communities, the stakes are high. As one union leader put it: “Everybody is nervous, everybody is uncertain about what the future is going to bring.
Dalena Reporters will continue to monitor developments at Algoma Steel — including any further layoffs, government interventions, and the broader impact on steel-dependent industries across Canada.