The Current The view from the Sault on steel and tariffs
Oct 22, 2025
A community grapples with the fallout from steel tariffs as Algoma Steel warns of potential layoffs after receiving significant government loans. The city's mayor discusses the anxiety caused by rising tariffs and the reliance on cross-border trade with the U.S. Plans to pivot to electric steelmaking create uncertainty about future jobs. Local businesses face investment freezes, while there are efforts for economic diversification and stronger community support. The union highlights concerns over job protection linked to government aid.
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Town Reliant On Cross-Border Steel
- Algoma Steel is the town's largest employer and heavily integrated with the U.S. market, shipping 50–60% of its product there.
- Those ties make Sault Ste. Marie highly vulnerable to U.S. trade policy and tariffs.
Tariff Spike Triggered A Market Shock
- U.S. tariffs rose from 25% to 50%, causing a sudden and severe market shock for Algoma.
- The higher tariff particularly hurt coil exports after several strong years for the plant.
Pursue Market Relief And Shift Products
- Negotiate tariff relief or accept a low protective tariff (around 10–15%) to keep U.S. markets viable.
- Meanwhile, redirect sales toward plate products and build domestic procurement channels.