200 Jobs Lost And Counting: Canadian Steel And Aluminum Plants Struggle Under US Tariffs

Canadian steel and aluminum plants are grappling with significant job losses as a result of recent tariffs imposed by the U.S. According to Reuters, around 200 workers have already been laid off, with more layoffs expected in the coming weeks. The tariffs, implemented by U.S. President Donald Trump on March 12, have created a ripple effect across the Canadian metals sector, forcing companies to scale back operations and reduce their workforce.

Early Layoffs and Economic Uncertainty

Marty Warren, national director of the United Steelworkers union, told Reuters that about 200 of his members have already lost their jobs due to the tariffs. Among the affected companies is Canada Metal Processing Group, or MPG Canada, which in February announced a workforce reduction of 140 employees in Ontario and Quebec. The company cited the “threat of incoming tariffs from the United States on steel and steel derivatives” as a key reason for the cuts."

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MPG Canada's reduction includes a mix of permanent layoffs, temporary layoffs, work share arrangements, and retirements. A company spokesperson told Reuters that MPG Canada has also implemented a hiring freeze to help stabilize its financial position. Algoma Steel, another major player in the Canadian steel industry, confirmed that it had laid off about 20 workers and could face additional cuts if it cannot find new Canadian customers.

Scott Noseworthy, a worker at MPG Canada’s Ivaco plant, described the situation as stressful and uncertain. "When Trump imposed the tariffs, it kind of hit us and brought us to a halt," he told Reuters. Noseworthy, who has a young daughter at home, said that the uncertainty about future work is weighing heavily on employees.

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Government Response and Calls for Action

In response to the layoffs and economic strain, Canadian Prime Minister Mark Carney recently announced measures to provide earlier access to employment insurance for affected workers. The federal government has also rolled out a multibillion-dollar aid program targeted at businesses and introduced a work-sharing program to help companies manage reduced hours while retaining staff.

Advocates, including Deena Ladd, executive director of the Workers’ Action Centre, argue that more comprehensive changes are needed. Ladd told Reuters that enhanced employment insurance, longer benefit periods, and higher minimum weekly payments should be considered to help workers weather the economic downturn.

MPG Canada President Matt Walker emphasized the importance of a strong domestic steel industry and called on the Canadian government to take swift action. Walker urged the government to implement retaliatory tariffs, prevent unfair imports from other countries, and promote the use of Canadian steel. “Maintaining a healthy domestic steel manufacturing industry and their customer base, who transform steel to steel products, is critical to the economic stability of an independent and autonomous sovereign nation," he said.

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Broader Economic Impact Expected

Economists warn that the impact of U.S. tariffs on Canadian steel and aluminum could deepen in the coming months. Warren told Reuters that a “tidal wave” of layoffs could follow once the 30-day reprieve for goods compliant with the trilateral U.S.-Mexico-Canada Agreement ends. “With the full-blown tariffs coming in on April 2 … it’ll probably affect 100,000 of our members,” he said.

The uncertainty surrounding U.S. trade policy is also affecting related industries. According to CTV News, Ontario auto plants are preparing for potential tariffs of 25% on cars and light trucks not made in the U.S., which could further disrupt Canada’s manufacturing sector. Workers and industry leaders are urging both the Canadian and U.S. governments to work toward a more stable trade environment.

The coming months will be critical for Canada's steel and aluminum industries as companies, workers, and policymakers navigate the fallout from the tariffs and seek solutions to stabilize the sector.

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