Stelco Holdings recently downsized its workforce by laying off 85 employees, as confirmed by union leader Ron Wells. This action follows the issuance of 90 layoff notices by the company in the preceding week.
The U.S.-owned steelmaker attributed the layoffs, affecting up to 500 workers in Hamilton and Nanticoke, Ontario, to temporary repercussions from the Canada-U.S. trade conflict. However, factors such as new technologies and evolving market demands are aligning with tariff challenges to reduce the industry’s once-significant labor force.
Statistics Canada reports a decline in direct employment within Canada’s primary steel manufacturing sector, dropping from nearly 29,000 workers in 2003 to approximately 14,000 workers by July. Wells, the president of United Steelworkers Local 1005 and a long-serving Stelco employee, noted that the company’s workforce stood at about 14,000 when he first joined.
The transformation in steel production processes has led to increased efficiency, requiring fewer employees to produce a ton of steel, according to Wells. Cleveland-Cliffs, the Ohio-based parent company of Stelco and North America’s largest flat-rolled steel producer, witnessed a reduction in its total workforce from around 30,000 to roughly 25,000 between the end of 2024 and 2025.
In response to challenging market conditions, including subdued demand from North American automakers, Cleveland-Cliffs implemented significant layoffs, including idling a blast furnace in Michigan, leading to additional job cuts in Minnesota to align production with diminished demand.
The imposition of tariffs by U.S. President Donald Trump on certain steel and aluminum imports from Canada prompted Stelco to announce up to 500 layoffs at its Ontario facilities. This move triggered a dispute between the company and the Canadian government regarding Stelco’s obligations under the Investment Canada Act to maintain a specific workforce in the country.
Apart from Stelco, other steelworkers in Ontario are facing uncertain job prospects. Algoma Steel issued layoff notices to approximately 1,000 workers in December, attributing the decision to U.S. tariffs impacting its export competitiveness and a shift towards more environmentally friendly electric-arc furnace production.
Additionally, ArcelorMittal Long Products Canada permanently closed its wire-drawing facility in Hamilton in 2025, citing economic challenges and increased steel imports. Calls have been made to address the influx of cheaper foreign steel imports, with industry stakeholders advocating for measures to safeguard Canadian producers from unfair competition.
Looking ahead, a forecast by research firm Wood Mackenzie highlights the contrasting trajectories of the steel industries in the U.S. and Canada. While U.S. steel production is projected to increase, buoyed by trade disruptions and market dynamics, Canadian producers are anticipated to face mounting pressure on exports and capacity utilization.
Despite the current uncertainties, Wells remains hopeful for the future, expressing optimism that Stelco will eventually recall the laid-off workers once the trade situation stabilizes. The ongoing dialogue between industry players and policymakers underscores the complex challenges facing the steel sector in Canada.
