Hundreds of Canadian workers—primarily in the steel and aluminum industries—have been laid off as a result of tariffs imposed by U.S. President Donald Trump, according to major unions and affected companies.
Economists warn that this is just the beginning, with the impact of tariffs expected to deepen the longer they remain in effect. The uncertainty surrounding Trump’s trade policies has cast a chill over Canada’s economy and job market.
The initial tariffs on steel and aluminum were introduced on March 12, with further measures anticipated by April 2.
Marty Warren, national director of the United Steelworkers union—representing over 225,000 Canadian members—said that approximately 200 members have already lost their jobs. He fears the situation will worsen once a 30-day exemption for goods under the USMCA trade agreement expires.
“We could see a tidal wave next week,” said Warren, warning that as many as 100,000 members could be affected when the full slate of tariffs takes effect.
Among the companies impacted is Canada Metal Processing Group, which issued a press release on February 24 announcing the reduction of 140 jobs due in part to looming U.S. tariffs on steel and steel derivatives. A company spokesperson confirmed the job cuts include permanent and temporary layoffs, work-sharing arrangements, and retirements. The company has also frozen hiring.
Ontario-based Algoma Steel has also begun downsizing. CEO Michael Garcia confirmed the company laid off about 20 employees and may need to cut more if domestic demand doesn’t increase.
“Every single job lost is a significant blow,” Warren emphasized.
Scott Noseworthy, a shredder operator at the Canada Metal Processing Group’s Ivaco plant in Ontario, said workers were initially hopeful that the tariffs could be avoided. Instead, they’ve been assigned to maintenance tasks amid the uncertainty.
“It’s hectic,” he said. “You’re not sure whether or not you’re going to have work one week to the next.” With a two-year-old daughter at home, the instability is particularly difficult.
Warren is calling for expanded employment insurance (EI) and retraining support for laid-off workers.
Just days before calling a federal election, Prime Minister Mark Carney announced new measures to provide earlier access to EI. The federal government also unveiled a multi-billion-dollar aid package for businesses and a work-sharing program offering EI benefits to workers with reduced hours.
However, advocates and some economists say more robust action is needed—including long-term EI reforms and higher minimum weekly payouts. Economist Armine Yalnizyan noted that pilot programs could be introduced during an election campaign, but permanent reforms would require legislation.
Labour Minister Steven MacKinnon was unavailable for comment.
In a statement, department spokesperson Mila Roy said the government will continue to monitor the effects of tariffs across industries and “will bring forward additional measures to support workers and businesses as needed.”
Deena Ladd, executive director of the Workers’ Action Centre, said her group is already hearing from workers being let go at smaller subcontracting and import-export companies tied to steel and aluminum supply chains.
“Things are changing every day,” Ladd said. “The uncertainty is bad for businesses—but even worse for workers.”
