Algoma Steel Slashes 1,000 Jobs Amid U.S. Tariff Pressure

Canadian steelmaker Algoma Steel Group Inc. is set to lay off 1,000 employees and shut down its blast furnace operations within months, a drastic move aimed at stemming losses caused by aggressive U.S. trade policies. The company confirmed that the layoffs will take effect on March 23. Alongside the job cuts, Algoma is closing its coke-making facility as it fast-tracks a transition to electric-arc furnace production. Initially planned for later, this shift is now scheduled for early 2026, a full year ahead of the previous timeline.

The decision is a direct response to the heavy financial toll of 50% tariffs imposed by the Trump administration on foreign steel. Spokesperson Laura Devoni didn’t mince words, stating that the tariffs have completely upended the market and effectively locked Algoma out of the U.S. The financial hit is already clear in the books: sales dropped 13% last quarter, and the company had to swallow C$89.7 million ($64.1 million) in tariff costs alone—proof of just how "closed" that market has become.

Algoma managed to secure C$500 million in emergency aid from Ottawa and the province to help navigate the crisis, but the company says the money alone can't stop the changes. With a total workforce of 2,500 navigating this uncertainty, Algoma argues it must fast-track its transition to withstand "extraordinary and external market forces." Markets reacted negatively to the news, with Algoma’s stock falling 6.4% in afternoon trading.

In Ottawa, Industry Minister Mélanie Joly addressed the situation in Parliament, condemning the "unjustified and unjustifiable tariffs imposed by the White House." She vowed that the government would continue to support the affected workers and help the steelmaker pivot toward developing new products and finding new markets outside the U.S.