The layoffs have already begun.
Sault Ste. Marie-based Algoma Steel has laid off 20 employees as a result of U.S. President Donald Trump’s threats to impose import tariffs on Canadian steel and aluminum, and union officials warn more cuts could be coming across the industry.
The layoffs came before Trump’s announcement Tuesday that he’d be doubling the threatened tariffs to 50 per cent, beginning Wednesday, Algoma spokesperson Laura Devoni confirmed in an email.
“Related to the tariffs we have had approximately 20 layoffs to date,” Devoni said. The company initially announced the layoffs last week.
It wasn’t immediately clear whether Trump’s threat to increase steel and aluminum tariffs to 50 per cent was on top of the across the board tariff of 25 per cent scheduled to take effect on all Canadian imports April 2.
“We believe 75 per cent is still on the table,” an industry source said.
In an interview Tuesday with CBC, Algoma CEO Michael Garcia didn’t specifically mention layoffs, but acknowledged that the trade war is creating huge stress for the company its workers.
“They’re worried about the stability, the financial stability of the company,” said Garcia. “We’re trying to reassure them that if we continue to focus on delighting our customers, finding new opportunities for our steel in Canada that, you know, we’ll see our way through. It’s a very volatile situation.”
In trading on the TSX Tuesday, Algoma bounced around, falling as low as $7.55 per share before recovering to $7.99 by 2:45 p.m., meaning they were actually up five cents — or 0.63 per cent — on the day.
Algoma reports its fourth-quarter earnings Wednesday.
In an emailed statement, the head of the United Steelworkers union in Canada and its international president blasted Trump’s escalation.
“These tariffs are nothing less than a potential industry killer,” said Marty Warren, USW national director for Canada. “It’s an economic attack on workers and our economic sovereignty.”
“This is a serious escalation in an unnecessary trade war with a trusted ally, and jobs and communities on both sides of the border hang in the balance,” said USW international president David McCall.
