Algoma Steel plans to lay off more than 1,000 workers over the coming months.
“The North American steel market is highly integrated, and Algoma Steel has been significantly impacted by the unprecedented tariffs imposed by the United States,” a company spokesperson wrote in a statement to CityNews. “These tariffs have fundamentally altered the competitive landscape and sharply limited our ability to access the U.S. market.”
“As a result of these pressures, Algoma has been forced to conclude its long history as an integrated steel manufacturer and close its blast furnace and coke-making operations in early 2026,” the spokesperson added. “Algoma will transition to Electric Arc Furnace (EAF) steelmaking at that time, a year earlier than previously anticipated or planned.”
The company says it issued approximately 1,000 lay off notices that will come into effect on March 23, 2026, as part of the closure of its blast furnace and coke making operations.
“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 spokesperson added.
As of December 31, 2024, Algoma had 2,780 full-time employees and is the largest employer within the Sault Ste. Marie community. The company says it is committed to working with federal and provincial officials, along with unions and community agencies to provide resources and support to affected employees over the coming months.
Canada’s steel industry has taken a bruising from U.S. tariffs that were introduced in March 2025. Steel exports to the U.S. have fallen by 24 per cent year over year, according to data from the federal government, and employment in the steel sector has significantly dropped since tariffs were introduced.
Earlier this year, Algoma received a $400 million loan from the federal government and $100 million from Ontario to strength its balance sheet. Its layoffs come just days after Prime Minister Mark Carney introduced additional measures to help the struggling industry find fresh markets for their goods within Canada.
“As companies in sectors being targeted by President Trump’s tariffs navigate ongoing economic uncertainty, our government will do whatever it takes to protect Ontario workers, businesses and communities,” Vic Fedeli, Ontario’s Minister of Economic Development, Job Creation and Trade said in a statement. “We’ve provided Algoma a $100 million loan to keep as many workers on the job as possible.”
The minister said the provincial government is activating a local power centre to “provide enhanced supports for impacted workers, including retraining programs to get people into new jobs as quickly as possible.”
“Recent federal government changes to tariff rate quota levels for steel will help to ensure Canadian companies use more Canadian steel,” he added. “Now, we need the federal government to speed up procurement to use Ontario steel to build pipelines, critical infrastructure, ships and other military and defence equipment.”
With files from The Canadian Press.
