Layoffs sparked by Trump tariffs—Canadian steel maker Algoma to slash 1,000 jobs, roughly 40% of its staff

Canadian steel maker Algoma Steel Group is set to slash 1,000 jobs—about 40% of its staff—and close its blast furnace in northern Ontario in a bid to stem losses resulting from US tariffs imposed by President Donald Trump.

According to report by Bloomberg, the Sault Ste. Marie-based company is also considering shutting shop on its coke-making operation amid plans to focus solely on making steel using electric-arc furnaces in early 2026.

Tariffs stifle access to US market

The news comes on the back of the Trump administration's decision to impose 50% tariffs on foreign steel, which Algoma said had severely hit its ability to access the market across the border.

Trump's tariffs “have fundamentally altered the competitive landscape and sharply limited our ability to access the US market, company spokesperson Laura Devoni was quoted as saying by Bloomberg.

“This transition is necessary to protect 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 would come into effect on March 23 next year.

Bloomberg reported that the Canadian steel makers sales had dipped by 13% in the third quarter following the imposition of tariffs.

With Algoma struggling, the company also received C$500 million in emergency loans from the governments of Canada and Ontario.

Algoma currently employs around 2,500 people, and despite the layoffs and its difficult situation, has found governmental support.

On Monday, Canadian Industry Minister Melanie Joly doubled down on support for Algoma, saying in Parliament that the government would continue to work with Algoma employees affected by the “unjustified and unjustifiable tariffs imposed by the White House".

Joly also vowed further support to the steel maker for developing new products and accessing new markets in these difficult times.