US tariffs trigger layoffs in Canadian steel and aluminium sector

Hundreds of Canadian workers have lost their jobs in recent weeks following new US tariffs targeting steel and aluminium imports.

The policy, introduced by President Donald Trump on March 12, has led to a swift response across the Canadian manufacturing sector, with economists warning of broader economic disruption.

The national steelworkers’ union says at least 200 layoffs have already occurred, with expectations that tens of thousands more could follow if the tariffs remain in place and intensify further in April.

Canada is the largest steel supplier to the United States, making its industries particularly exposed to trade-related fallout.

Tariffs trigger 200 job cuts

Companies operating in Canada’s steel and aluminium sectors are already reporting significant impacts since the March 12 tariffs came into effect.

Among them is Canada Metal Processing Group, which on February 24 had already warned of an upcoming workforce reduction linked to the anticipated US policy shift.

The company followed through by cutting 140 jobs, citing the US tariff threat as a key factor.

These layoffs include a mix of permanent and temporary job cuts, work-share adjustments, retirements, and a hiring freeze.

Another affected firm, Ontario-based Algoma Steel, has also made staff reductions.

The company laid off 27 people, with its CEO indicating that more cuts may follow unless it secures new Canadian clients to replace lost US business.

The United Steelworkers union, which represents over 225,000 members in Canada, confirmed that these are just early signs of deeper economic repercussions to come.

100,000 more at risk by April

A 30-day reprieve for certain goods compliant with the US-Mexico-Canada Agreement is set to expire on April 2.

Once it ends, full implementation of the tariffs is expected to affect a wider range of imports.

The United Steelworkers union has warned that this next wave of tariffs could impact as many as 100,000 of its members across Canada, especially those tied to export-heavy supply chains.

This uncertainty has hit manufacturing towns particularly hard. Workers at Canada Metal Processing Group’s Ivaco facility in eastern Ontario were informed more than a month ago about the potential for layoffs, but only recently received confirmation.

Since then, some employees have returned to limited duties such as maintenance and clean-up, while their longer-term employment outlook remains unclear.

Canada rolls out support plans

In response to the rising economic stress, Canadian Prime Minister Mark Carney announced new measures on Friday, just days before calling a federal election. These include allowing earlier access to employment insurance for affected workers.

Earlier this month, the federal government also revealed a multi-billion-dollar business aid programme and an extended work-sharing initiative to support employees with reduced working hours.

While these measures aim to cushion the blow, labour advocates and economists argue that more comprehensive reforms are necessary.

Proposals include expanding employment insurance access, increasing the duration of benefits, and implementing a weekly minimum payment standard.

Smaller firms feel the strain

Beyond major steel and aluminium producers, smaller businesses and subcontractors tied to import-export operations are also feeling the strain.

Deena Ladd of the Workers’ Action Centre said her organisation has seen rising job losses at smaller firms operating in or adjacent to the steel and aluminium trade.

These workers often face greater vulnerability due to fewer legal protections and limited access to support systems.

A spokesperson from Canada’s labour department said the federal government would “continue to monitor impacts of tariffs across sectors and the economy” and would introduce further measures as needed.

However, with layoffs growing and the April 2 deadline approaching, calls for faster and broader intervention are likely to increase in the coming weeks.

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