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Algoma Steel will cease blast furnace operations and lay off 1,000 employees as tariffs bite

Algoma Steel, a Canadian steelmaker, announced on Monday that it will lay off 1,000 workers and close its blast-furnace and coke production operations in Ontario by early 2026 because of tariff pressures.

Tariffs of 50% on steel imported from Canada have severely restricted Canadian producers' access to the U.S.

Algoma is based in Sault Ste. Marie has announced that it will switch to electric arc-furnace steelmaking in early 2026. This is a year sooner than originally planned.

Algoma Steel said that the North American steel industry is highly integrated and the tariffs levied by the U.S. have had a significant impact on the market.

The company reported direct tariff costs totaling C$89.7 Million ($64.10 Million) for the quarter ended September 30. About half of the total steel volume was shipped to the U.S.

Algoma is planning to issue approximately 1,000 notices of layoffs that will take effect on March 23, 2026. The company employed 2,818 people full-time as of December 31, 2024.

The company stated that "this transition is needed to protect Algoma’s future against these external and extraordinary market forces."

(source: Reuters)