Hundreds of layoffs signal deeper crisis ahead
Canadian steel and aluminum plants are facing a wave of job losses after U.S. President Donald Trump imposed sweeping tariffs on March 12. According to Reuters, more than 200 workers have already been laid off, with further cuts expected in the coming weeks as the industry scrambles to adapt.
Marty Warren, national director of the United Steelworkers union, said the impact has been swift and severe. Companies like MPG Canada have already slashed 140 jobs across Ontario and Quebec, citing the threat of tariffs on steel and steel derivatives. The cuts include permanent and temporary layoffs, work share arrangements, and retirements. The company has also implemented a hiring freeze.
Algoma Steel, another key industry player, confirmed 20 layoffs and warned more could follow if domestic demand does not pick up. Workers like Scott Noseworthy at MPG Canada’s Ivaco plant described the environment as “stressful and uncertain,” especially for families relying on stable employment.
Government response draws mixed reactions
In response, Prime Minister Mark Carney has announced early access to employment insurance benefits for affected workers. A multibillion-dollar federal aid package has also been unveiled, along with a work-sharing program to help businesses retain staff by reducing hours rather than issuing layoffs.
However, labor advocates say these measures don’t go far enough. Deena Ladd, of the Workers’ Action Centre, is calling for enhanced employment insurance, longer benefit periods, and higher minimum weekly payments. “More comprehensive changes are needed,” she told Reuters.
MPG Canada President Matt Walker echoed these concerns, urging Ottawa to implement retaliatory tariffs, stop unfair imports, and promote Canadian steel. “A strong domestic steel industry is essential for economic sovereignty,” Walker said.
More layoffs loom as trade pressure intensifies
Warren warned of a “tidal wave” of layoffs when the 30-day reprieve for North American trade-compliant goods ends on April 2. He estimates that up to 100,000 steelworkers could be affected if full tariffs take effect as planned.
The uncertainty has spread to other industries, especially Ontario’s auto sector, which is bracing for potential 25% tariffs on cars and light trucks not made in the U.S. Industry leaders fear further disruption to Canada’s manufacturing backbone if bilateral trade tensions remain unresolved.
With the clock ticking, the next few months are crucial. Companies, workers, and policymakers will need to act decisively to blunt the fallout from Trump’s protectionist trade agenda and stabilize Canada’s steel and aluminum sector.
