Algoma Steel, one of Canada's largest steel producers, announced plans this week to lay off 1,000 workers by March 2026 due to mounting financial strain from U.S. trade measures. The Ontario-based company cited "unprecedented" 50% tariffs imposed by Washington as the primary cause, stating they've "fundamentally altered" its ability to compete in the American market.
The layoffs will affect more than a third of the firm's 2,700-strong workforce in Sault Ste. Marie, a city where the steelmaker serves as a major economic anchor. This development follows CA$500 million in federal and provincial financial assistance granted to Algoma earlier this year to offset trade pressures.
Ontario Economic Development Minister Vic Fedeli revealed the province will establish a specialized support center offering retraining programs for displaced workers. He simultaneously urged Canada's federal government to accelerate infrastructure projects using domestic steel, including pipelines and defense equipment.
The announcement highlights ongoing North American trade tensions, with industry analysts warning of potential ripple effects across manufacturing sectors. As businesses and governments navigate these challenges, workforce transitions and supply chain adaptations remain critical focus areas heading into 2026.
