Algoma Steel announces 1,000 layoffs as U.S. tariffs force early transition to new production model

Algoma Steel says it will lay off roughly 1,000 employees as the company accelerates a major shift in its operations to respond to steep U.S. trade tariffs. The Sault Ste. Marie–based producer confirmed the notices were issued Monday, with the cuts taking effect in March.

Company representatives say the 50 per cent tariff imposed by the United States last year sharply reduced access to its largest export market. With about 2,700 employees, Algoma has been among the Canadian steelmakers most affected by the ongoing trade dispute, which replaced a previously integrated North American steel supply chain.

In a written statement, spokesperson Laura Devoni said the tariffs have reshaped the company’s competitive position and left little choice but to shut down its blast furnace and coke-making facilities early next year. Those closures were originally planned for 2027, but the market pressures have forced an accelerated transition to Electric Arc Furnace technology.

The layoffs are scheduled to begin on March 23, 2026, with the company stating the operational shift is necessary to remain viable. The announcement has drawn concern in Northern Ontario communities where steel jobs play a central economic role, and comes as federal officials continue pressing Washington for changes to the tariff regime.