Mayor Matthew Shoemaker said the layoffs announced today at Algoma Steel demonstrate the “profound and escalating threat” of U.S. tariffs on the steel industry and the city – as well as the need for action.
With a complement of 2,516 workers as of Oct. 31, over 1,000 positions – around 40-per-cent of the steel plant’s workforce – are set to be furloughed by March 2026.
“I think it's an obvious consequence of six months of 50-per-cent steel tariffs, and this really shines a light on the need to get the tariff deal done – yesterday,” the mayor said.
While around 1,000 job losses were expected in the next few years – as Algoma Steel transitions to electric arc furnace production – Monday’s announcement demonstrates the need for swift action from the federal government, Shoemaker said.
“The election was in March – there's been time to plan for it. Now is the time to put those plans into action,” he said.
Amid crushing U.S. tariffs, Algoma Steel reported a staggering $652 million operational loss during the third quarter of the year – a figure that eclipses last year’s operational loss of $83.6 million during the same quarter.
Federal plans have been made to use Canadian products in domestic projects, but Shoemaker said the steel industry’s future relies on those plans turning into steel orders.
“The industry and the mills – Algoma specifically – need those orders now in order to ensure their continued viability,” he said.
Now would also be an opportune time to turn plans for the Port of Algoma into a reality – something the mayor mentioned to both Premier Doug Ford and Prime Minister Mark Carney in letters written following today’s news.
This fall, the city and the Hamilton Oshawa Port Authority announced a partnership for the proposed multimodal marine port – a project that aims to connect northern Ontario’s resources with southern Ontario’s industry.
A business case on the project is near completion and will soon be presented to both levels of government.
“We've got this situation coming in March – we can be shovel ready at the end of March,” the mayor said.
“We will be able to mitigate some of those job losses with both construction jobs and operational jobs over the course of the several years it'll likely take to build.”
For the province’s part, committing Toronto-based Ontario Lottery and Gaming jobs to its headquarters in Sault Ste. Marie could also make a meaningful impact locally.
“I think having OLG jobs committed up here, in the short term, is something that could stabilize the economy while we do other things like the Port of Algoma investment for longer term sustainability and growth,” Shoemaker said.
At city hall, Shoemaker said the first item on the docket is the 2026 city budget.
“The efforts will be to keep the city's share of the tax increase to the lowest number possible,” he said.
“The objective will be to get it to the lowest number possible so that people can have some cost certainty when they may not have income certainty.”
The layoffs could create numerous local consequences, from increased reliance on social services, to impacts on local real estate prices and secondary businesses.
The mayor said the city will offer a “shoulder to support” those impacted by today’s announcement.
“The Sault is a big family,” he said.
“We are a community that treats our neighbours like family, and when any one member of the family suffers a crisis or pain, like many of our Saultites are feeling today, the job of the rest of us is to support them and give them a shoulder to lean on.”
– with files from David Helwig