Canadian steelmaker Algoma Steel said Monday it would lay off 1,000 employees and close its blast furnace and coke-making operations in Ontario in early 2026 due to tariff pressures.

The Trump administration's 50% tariffs on foreign steel have significantly restricted access for Canadian producers to the U.S. market.

Algoma, based in Sault Ste. Marie, added it will transition to steelmaking by electric arc furnace in early 2026, a year earlier than previously planned.

The North American steel market is highly integrated, and Algoma Steel has been significantly impacted by the unprecedented tariffs imposed by the U.S., the company said.

The company had reported direct tariff costs of C$89.7 million ($64.10 million) for the three months ended September 30, with shipments to the U.S. representing about half of total steel volumes.

Algoma will issue about 1,000 layoff notices which will be effective on March 23, 2026. As of December 31, 2024, the company had 2,818 full-time employees.

"This transition is necessary to protect Algoma’s future in the face of these extraordinary and external market forces," the company said.

($1 = 1.3994 Canadian dollars)