Sault bracing for economic blow from U.S. steel tariffs
Algoma steel
A worker is shown at Algoma Steel in Sault Ste. Marie, Ontario on Friday, April 25, 2025. (File photo/THE CANADIAN PRESS/Sean Kilpatrick)
'I think we all know that at 50 per cent, the company will be selling everything at a loss, which is not a sustainable business,' said Bill Slater, president of United Steelworkers (USW) Local 2724, one of two unions representing Algoma Steel workers.
With most of Algoma's business tied to U.S. markets, the tariff hike threatens significant economic fallout. The company declined an interview request but provided a statement previously sent to CTV News:
The North American steel market is highly integrated, and Algoma Steel is deeply concerned with the announced increase in 232 steel tariffs to 50%. The Algoma Team remains in close consultation with our customers and the government regarding the challenges this presents to our business. Algoma is advocating for swift government action to support Algoma and the Canadian steel industry during this volatile time.
— Algoma Steel, coporate affairs
Mayor Matthew Shoemaker warned prolonged tariffs could devastate the city.
'There would be job losses. There would be secondary industries or suppliers that close. There would be restaurants that close. It would be … it would be the end of the community as we know it,' he said.
Matthew Shoemaker
An undated profile picture of Sault Ste. Marie Mayor Matthew Shoemaker. (File Photo/The City of Sault Ste. Marie)
Slater noted 19 union members are already facing long-term layoff notices in July due to the previous 25 per cent tariffs, adding 'everybody is worried about their jobs.'
While the federal government has proposed support measures – including Employment Insurance adjustments and increased naval shipbuilding contracts using Canadian steel – Slater said these won't provide immediate relief.
'They're all good infrastructure projects, all good things that we need for the country, but they're not going to help us today. They may help us in the future,' he said.
He urged governments to 'stabilize the Canadian market', citing an influx of foreign steel driving down domestic prices.
'There's too much steel coming in from other countries because it's too hard for them to get into the U.S., and that's causing a lower price on the steel in Canada.'
A meeting is scheduled for Friday between Algoma Steel, USW Locals 2724 and 2251, Mayor Shoemaker, MP Terry Sheehan, and MPP Ross Romano to discuss solutions.
Steel coils cool at Algoma Steel Inc., in Sault Ste. Marie, Ont., Friday, April 25, 2025. THE CANADIAN PRESS/Sean Kilpatrick
Steel coils cool at Algoma Steel Inc., in Sault Ste. Marie, Ont., Friday, April 25, 2025.(File photo/THE CANADIAN PRESS/Sean Kilpatrick)
Shoemaker stressed the need for both short- and long-term fixes.
'At 50 per cent tariffs, there needs to both be a long-term solution or a permanent fix to the tariffs and a short-term solution to help plants immediately, because there is not the luxury of time to deal with the increased burden that is going to be placed on municipalities, the industry, and the community members affected by it,' he said.
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