Algoma Steel to lay off 1,000 workers over ‘unprecedented tariffs’

Algoma Steel said Monday that it plans to lay off about 1,000 workers due to impacts from tariffs imposed by U.S. President Donald Trump.

In an emailed response to Global News, the Ontario-based company said the layoffs will come as a result of a Sault Ste. Marie plant closure being made to adapt to the “fundamentally altered” landscape.

“Algoma Steel has been significantly impacted by the unprecedented tariffs imposed by the United States. These tariffs have fundamentally altered the competitive landscape and sharply limited our ability to access the U.S. market,” Algoma Steel said in a statement.

“As part of the closure of its blast furnace and coke making operations, Algoma has made the difficult decision to issue approximately 1,000 layoff notices today, effective in 16 weeks on March 23, 2026.”

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The company goes on to say how the decision to close the plant and lay off workers is “necessary” given what it describes as “extraordinary and external market forces.”

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This comes less than a month after Algoma Steel announced it had completed a $500 million financing transaction with the federal and provincial governments.

In September, it was announced Algoma Steel was poised to receive a total of half a billion dollars in tariff relief funding from both the federal and provincial governments as part of the Large Enterprise Tariff Loan program.

The loans were set up to help the steel company limit disruptions to its workforce and pivot its business model to be less reliant on the United States for its business.

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