Canada’s Algoma Steel to lay off 1,000 workers due to impact of US tariffs

Canadian steel producer Algoma Steel Group will lay off 1,000 employees and close its blast furnace in Sault Ste. Marie, Ontario, to reduce losses caused by US tariffs and ensure its long-term viability, CTV News reports.

In early 2026, the company plans to switch to producing steel exclusively in electric arc furnaces (EAF), a year ahead of schedule, and will also close its coke production facility.

“As part of the closure of its blast furnace and coke production, Algoma has made the difficult decision to issue approximately 1,000 layoff notices, effective March 23, 2026,” the company said in a statement on December 1.

According to Algoma Steel spokeswoman Laura Devoni, the company has been significantly affected by unprecedented US tariffs, which have fundamentally changed the competitive environment and severely limited Algoma’s access to the US market. As a result of this pressure, the group is forced to end its long history as an integrated steel producer.

Canadian Industry Minister Melanie Joly, Bloomberg reports, told parliament that the government would continue to work with Algoma employees affected by unjustified US tariffs and promised to support the steelmaker in developing new products and entering new markets.

Ontario Trade Minister Vic Fedeli said the province would take steps to help workers, including retraining programs.

In November of this year, Algoma announced the completion of a C$500 million financial agreement with the federal and provincial governments of Ontario. The seven-year credit lines will strengthen the company’s financial flexibility as it moves forward with its transition to electric arc furnace steel production.