Stelco Holdings recently implemented workforce reductions, with 85 employees laid off last week, following a prior issuance of 90 layoff notices, as confirmed by union leader Ron Wells. The U.S.-owned steelmaker attributes the layoffs, affecting up to 500 workers in Hamilton and Nanticoke, Ont., to temporary repercussions of the Canada-U.S. trade conflict. However, the industry faces additional challenges from technological advancements and shifting demand dynamics, compounding the impact of tariff uncertainties on the once-thriving workforce.
Statistics Canada reports a decline in direct employment within Canada’s primary steel manufacturing sector from nearly 29,000 workers in 2003 to around 14,000 as of July this year. Wells, a 47-year veteran at Stelco and president of United Steelworkers Local 1005, recalls the workforce size at Stelco being approximately 14,000 when he began working there. He notes the industry’s evolution towards streamlined operations requiring fewer personnel to produce a ton of steel.
Cleveland-Cliffs, the Ohio-based parent company of Stelco and North America’s largest flat-rolled steel producer, saw its total workforce reduce from about 30,000 employees to roughly 25,000 between December 31, 2024, and December 31, 2025. Job cuts this year included approximately 600 layoffs in Dearborn, Mich., due to reduced demand from North American automakers. This move led to an additional 600 job cuts in Minnesota to align raw ore output with decreased blast furnace demand.
In response to the imposition of tariffs on steel and aluminum imports from Canada by U.S. President Donald Trump, Stelco announced up to 500 layoffs at its Ontario operations. This announcement sparked a dispute between the company and the federal government regarding Stelco’s obligations under the Investment Canada Act to retain a specific number of workers in Canada.
In a similar vein, other steelworkers in Ontario are facing employment uncertainties. Algoma Steel issued layoff notices to about 1,000 workers last December, nearly one-third of its workforce, attributing the decision to U.S. tariffs affecting export competitiveness. Concurrently, ArcelorMittal Long Products Canada closed its Parkdale wire-drawing facility in Hamilton in June 2025, citing economic challenges and market conditions.
Calls have been made to address the influx of cheaper foreign steel imports, with stakeholders advocating for increased tariff-rate quotas to shield Canadian producers from overseas competition. The steel industry outlook varies between the U.S. and Canada, with projections indicating production growth in the U.S. while Canadian producers face mounting pressures on export volumes and capacity utilization.
Despite the challenges, there is some optimism amid rising spot prices for galvanized steel, a product Stelco is transitioning away from in Hamilton. However, uncertainties persist, especially regarding the future of the affected workers and ongoing negotiations between stakeholders. Wells remains hopeful for a resolution that would lead to the reemployment of laid-off workers, emphasizing the temporary nature of the current situation and expressing confidence in a positive outcome from the trade scenario.