Stelco Holdings recently laid off 85 employees, as confirmed by union leader Ron Wells. This action follows 90 previous layoff notices issued by the company. While the U.S.-owned steelmaker attributes the layoffs to the Canada-U.S. trade war, advancements in technology and shifting demand patterns are also contributing factors leading to a reduction in the workforce.
Statistics Canada reports a significant decline in direct employment within Canada’s primary steel manufacturing industry, dropping from nearly 29,000 workers in 2003 to approximately 14,000 as of July. Wells, the president of United Steelworkers Local 1005 and a long-time Stelco employee, recalls a time when the company’s workforce stood at around 14,000 employees.
According to U.S. regulatory filings, Cleveland-Cliffs, the parent company of Stelco and one of North America’s largest flat-rolled steel producers, experienced a decrease in its workforce from about 30,000 to roughly 25,000 employees between 2024 and 2025. This downsizing included layoffs in Michigan and Minnesota due to soft demand from automakers, aligning raw ore output with reduced blast furnace demand.
The imposition of tariffs on steel and aluminum imports from Canada by U.S. President Donald Trump led Stelco to announce up to 500 layoffs at its Ontario operations. This decision sparked a dispute between the company and the Canadian government regarding Stelco’s commitments under the Investment Canada Act to maintain a specific number of workers in the country.
Other steelworkers in Ontario are also facing job uncertainties. Algoma Steel issued layoff notices to about 1,000 workers, attributing the cuts to U.S. tariffs impacting its export competitiveness. Similarly, ArcelorMittal Long Products Canada closed its wire-drawing facility in Hamilton, citing economic challenges and market conditions.
Calls have been made to address the influx of cheaper foreign steel imports, with industry stakeholders urging the government to increase tariff-rate quotas to protect Canadian producers. The steel industry outlook differs between the U.S. and Canada, with forecasts indicating growth in U.S. steel production but challenges for Canadian producers due to disrupted trade flows and market conditions.
Despite the current layoffs, Wells remains hopeful for a resolution and believes the situation will be resolved soon, leading to the recall of the affected workers. He anticipates that the trade situation will improve, allowing Canadian steelworkers to return to work.