December 1,2025
RED FM News Desk
Struggling under steep U.S. tariffs imposed by President Donald Trump, Algoma Steel confirmed Monday that it has issued layoff notices to roughly 1,000 employees.
The Sault Ste. Marie, Ont.–based company employs about 2,700 people and has been severely affected by the 50 per cent tariffs introduced last summer, given that its primary customers are in the United States. “The North American steel market is highly integrated, and Algoma Steel has been significantly impacted by the unprecedented tariffs imposed by the United States,” spokesperson Laura Devoni said in an email.
She said the tariffs have “fundamentally changed the competitive landscape,” limiting Algoma’s access to the U.S. market and forcing the company to end its long-standing role as an integrated steel producer. Algoma will shut down its blast furnace and coke-making operations in early 2026.
Because of the tariffs, the company is now moving to Electric Arc Furnace steelmaking a year earlier than originally planned. In September, it was announced that Algoma would receive $500 million in federal and provincial loan support to help the company adjust to the tariff pressures.
The federal government will provide $400 million through the Large Enterprise Tariff Loan program, with Ontario contributing another $100 million.
Ontario Trade Minister Vic Fedeli said the province will support affected workers. “We are activating a local POWER centre to deliver enhanced assistance, including retraining programs to help people transition into new jobs as quickly as possible,” he said.
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