Stelco Holdings has recently cut 85 jobs, as reported by union leader Ron Wells. This comes after 90 layoff notices were issued the previous week. The U.S.-owned steelmaker attributes the layoffs in Hamilton and Nanticoke, Ont., to the ongoing Canada-U.S. trade war, technological advancements, and evolving market demands, resulting in a reduction of the workforce in Canada’s primary steel manufacturing industry.
Statistics Canada reveals a decline in direct employment from nearly 29,000 workers in 2003 to about 14,000 workers as of July. Wells, the president of United Steelworkers Local 1005 and a long-time Stelco employee, noted that the workforce at Stelco was around 14,000 strong when he first joined the company.
The total workforce of Cleveland-Cliffs, the parent company of Stelco, decreased from about 30,000 employees to roughly 25,000 between December 31, 2024, and December 31, 2025. This reduction included layoffs in Dearborn, Mich., and Minnesota due to soft demand and operational adjustments.
Stelco’s layoff announcement of up to 500 employees at its Ontario operations followed U.S. President Donald Trump’s imposition of tariffs on steel and aluminum imports from Canada. This has led to a dispute between Stelco and the federal government regarding the company’s obligations under the Investment Canada Act.
Additionally, other steel companies in Ontario, such as Algoma Steel and ArcelorMittal Long Products Canada, have also faced workforce reductions due to various factors, including trade challenges and market conditions.
Industry stakeholders, including union leaders and company executives, are urging the government to address the influx of cheaper foreign steel imports that are impacting the Canadian steel industry. Calls are being made to increase tariff-rate quotas to protect domestic producers from external competition.
An industry research firm predicts contrasting outcomes for the steel industry in the U.S. and Canada, with the U.S. expected to experience growth while Canadian producers face challenges due to disrupted trade flows and market dynamics.
Despite the current uncertainties, there is optimism for a resolution to the trade disputes and a potential turnaround in the steel industry, with hopes that laid-off workers will be recalled once the situation stabilizes.
