Canada's Algoma Steel to Cut 1,000 Jobs Amid US Tariffs

The layoffs come into effect on March 23.

SEATTLE (Scrap Monster): Canadian steelmaker Algoma Steel Group Inc. will let go of 1,000 employees and close its blast furnace in northern Ontario within months as it seeks to stem losses resulting from U.S. tariffs.

The company, based in the city of Sault Ste. Marie, is also shuttering its coke-making operation as it plans to transition to making steel solely by electric-arc furnace in early 2026, a year ahead of schedule, Algoma said Dec. 1 in an emailed statement.

The Trump administration’s 50% tariffs on foreign steel “have fundamentally altered the competitive landscape and sharply limited our ability to access the U.S. market,” spokesperson Laura Devoni said in the statement.

Algoma’s stock fell 6.4% at 3 p.m. in New York.

Algoma’s sales dropped 13% in the third quarter and it reported a direct tariff expense of C$89.7 million ($64.1 million) in that period, saying the U.S. steel market had become “largely closed to us.” The company, which currently has about 2,500 employees, was given C$500 million in emergency loans from the governments of Canada and Ontario.

The layoffs come into effect on March 23.

“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,” Algoma said.

Canadian Industry Minister Melanie Joly said Monday in Parliament that the government will continue working with the Algoma employees affected by the “unjustified and unjustifiable tariffs imposed by the White House” and vowed support for the steelmaker as it develops new products and accesses new markets.

Courtesy: www.ttnews.com