US tariffs: Canada steel, aluminum plants lay off workers

Hundreds of Canadian workers, many in the steel and aluminum sectors, have been laid off as a result of US President Donald Trump's tariffs.

Economists warned this was only the beginning as the impact of tariffs is expected to broaden the longer they are in place.

Uncertainty surrounding Trump's policies is said to have cast a chill over Canada's economy and labour market.

Recall that Trump imposed tariffs on steel and aluminum on March 12; more tariffs could be coming on April 2.

Marty Warren, the National Director of the United Steelworkers – the largest private-sector union in North America, with more than 225,000 members in Canada – said he has heard from members that about 200 of them are already out of a job.

Affected companies include Canada Metal Processing Group, which issued a February 24 press release announcing a workforce reduction of 140 employees due in part to “the threat of incoming tariffs from the United States on steel and steel derivatives.”

A company spokesperson said the workforce reduction is a combination of permanent layoffs, temporary layoffs, work share and retirements, adding that the company is also freezing hiring for new or vacant positions.

Warren said that Ontario-based Algoma Steel has also laid off 27 people.

Algoma Steel CEO Michael Garcia told newsmen that the company had laid off about 20 people and could lay off more if they cannot find new Canadian customers.

“Everyone losing a job or being laid off is a major hit,” Warren said.

He said he expects “a tidal wave” next week, when a 30-day reprieve is expected to end for goods compliant with the trilateral US-Mexico-Canada free-trade agreement.

“With the full-blown tariffs coming in on April 2 ... it'll probably affect 100,000 of our members,”; he added.