Canada’s Steel and Aluminium Industry Hit by US Tariffs, Job Cuts Begin

<p>The imposition of US tariffs on steel and aluminium imports has already resulted in significant job losses in Canada, with hundreds of workers affected, according to union representatives and company officials.</p>
<p>The tariffs, introduced by US President Donald Trump on March 12, are expected to have a widening impact as they remain in place, reported Reuters. Economists warned that this is only the beginning, with greater economic fallout anticipated in the coming weeks.</p>
<p>The uncertainty surrounding these trade policies has placed additional pressure on Canada&rsquo;s economy and labour market. More tariffs are expected to take effect on April 2, further deepening concerns, the report said.</p>
<p>Citing Marty Warren, national director of the United Steelworkers, the largest private-sector union in North America with over 225,000 members in Canada, the report noted&nbsp;that at least 200 of its Canadian members have already lost their jobs due to the tariffs.</p>
<p>Among the affected companies is Canada Metal Processing Group, which previously announced in a press release on February 24 that it would be cutting 140 jobs, citing “the threat of incoming tariffs from the United States on steel and steel derivatives.” With those tariffs now in place, the job losses have materialised.</p>
<p>A company spokesperson confirmed that the workforce reduction includes a mix of permanent and temporary layoffs, retirements, and work share arrangements. Additionally, the company has implemented a hiring freeze for any new or vacant positions.</p>
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<h3><strong>More Layoffs Expected in Coming Weeks</strong></h3>
<p>Canada, which is the largest supplier of steel to the US, is seeing the effects ripple across the industry. Ontario-based Algoma Steel has also begun cutting jobs, with CEO Michael Garcia confirming that around 20 employees have already been laid off. If the company is unable to secure new Canadian customers, more layoffs could follow.</p>
<p>Warren expressed deep concern over the growing crisis, stating, “Everyone losing a job or laid off is a major hit.” He predicted that job losses could escalate sharply, particularly when a temporary reprieve on some goods under the US-Mexico-Canada Agreement (USMCA) expires next week. “With the full-blown tariffs coming in on April 2 &hellip; it’ll probably affect 100,000 of our members,” he warned.</p>
<p>For workers like Scott Noseworthy, a shredder operator at Canada Metal Processing Group&rsquo;s Ivaco plant in eastern Ontario, the situation remains precarious. Employees were warned of possible layoffs more than a month ago, but confirmation only came recently.</p>
<p>”When Trump imposed the tariffs, it kind of hit us and brought us to a halt,” Noseworthy said. While he has been temporarily assigned to maintenance and cleanup work this week, his long-term employment remains uncertain.</p>
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<h3><strong>Government Response and Calls for Further Action</strong></h3>
<p>In an effort to cushion the economic blow, Prime Minister Mark Carney recently announced measures allowing affected workers earlier access to employment insurance. Additionally, the federal government has launched a multibillion-dollar aid package aimed at supporting businesses, along with a work-sharing program that enables employees to receive employment insurance benefits while working reduced hours.</p>
<p>Despite these measures, some advocates and economists argue that more substantial reforms are needed. Proposals include expanding employment insurance eligibility and introducing a minimum weekly benefit to provide better financial security for laid-off workers. Economist Armine Yalnizyan, an Atkinson Fellow on the Future of Workers, noted that while temporary adjustments could be made during an election campaign, long-term reforms would require legislative action.</p>
<p>Government officials have pledged to monitor the situation closely. “The Government of Canada will continue to monitor impacts of tariffs across sectors and the economy and will bring forward additional measures to support workers and businesses as needed,” said Mila Roy, a spokesperson for the labor department, in an email statement.</p>
<p>Meanwhile, advocacy groups like the Workers’ Action Centre are already witnessing the fallout, with smaller subcontractors and import-export businesses&mdash;many connected to the steel and aluminium supply chain&mdash;experiencing layoffs.</p>
<p>”Things are changing every day. &hellip; That uncertainty we&rsquo;ve seen a lot of people talk about, that&rsquo;s no good for employers or for businesses. You can imagine how much more difficult it is for workers,” said Deena Ladd, executive director of the organisation.</p>