Algoma Steel to Cut 1,000 Workers Due to Tariffs — Update

By Paul Vieira

OTTAWA--Algoma Steel said it would eliminate about 1,000 jobs, or about a third of its workforce, as the company shuts down production from its blast furnace and coke ovens that became financially unsustainable with hefty U.S. tariffs.

The steel maker, based in Sault Ste. Marie, Ontario, said the job losses would take effect in 16 weeks, or late March. This would represent one of the biggest employment hits to date for Canada from the shift in U.S. trade policy under President Trump.

Canada is the largest foreign provider of steel to the U.S. market, and Canadian products entering the U.S. face a 50% tariff. Algoma said the tariffs have altered the competitive landscape and sharply limited the company's ability to access the U.S. market.

The job cuts are necessary "to protect Algoma's future in the face of these extraordinary and external market forces," said Laura Devoni, Algoma's vice president of human resources and corporate affairs. "We will continue to advocate for a competitive and fair trading environment for Canadian steel."

In September, the Canadian and Ontario governments agreed to lend Algoma about 500 million Canadian dollars, or the equivalent of $357.7 million, to help withstand the financial hit from U.S. tariffs and provide stability while the company reorients strategy. The Canadian government said the financing would help limit layoffs at the company.

At the time of the loan, the company said it would accelerate its transition from steel production via its blast furnace and coke-making operations to an electric-arc furnace, which produces the metal by using an electric current to melt scrap steel and convert it into liquid steel. Devoni said the layoff notices to about 1,000 workers reflects the transition to the electric-arc steelmaking.

Canada said last week it would further tighten limits on imported steel to try to soften the blow for the domestic industry. U.S. and Canadian officials were in talks this fall about a narrower deal that would provide tariff relief for steel and other sectors facing elevated tariffs. But Trump suspended talks following the broadcast of television commercials in the U.S., paid for by the province of Ontario, that the President said misrepresented comments by former President Ronald Reagan regarding tariffs. No new formal talks are scheduled.

According to securities filings, Algoma employs about 2,800 workers.

Shares of Algoma fell more than 8% in trading Monday on the Toronto stock market.

Write to Paul Vieira at paul.vieira@wsj.com

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December 01, 2025 16:27 ET (21:27 GMT)