Stelco Holdings recently cut 85 jobs, as confirmed by union leader Ron Wells. Prior to this, the company had issued 90 layoff notices.

Although the U.S.-based steelmaker attributes the layoff plan affecting up to 500 workers in Hamilton and Nanticoke, Ont., to the Canada-U.S. trade war, advancements in technology and market demands are also contributing to the reduction in the industry’s workforce.

Statistics Canada data shows a decline in direct employment in Canada’s primary steel manufacturing sector, dropping from nearly 29,000 workers in 2003 to approximately 14,000 workers as of July.

Wells, the president of United Steelworkers Local 1005 and a 47-year Stelco veteran, mentioned that the company’s workforce was around 14,000 strong when he first joined. He highlighted the industry’s shift towards streamlined processes requiring fewer employees to produce steel.

According to U.S. regulatory filings, Cleveland-Cliffs, the owner of Stelco and North America’s largest flat-rolled steel producer, reduced its workforce from about 30,000 employees to roughly 25,000 between the end of 2024 and 2025. This downsizing was partly due to soft demand from North American automakers.

Stelco’s announcement of up to 500 layoffs at its Ontario operations followed President Trump’s executive order imposing tariffs on certain Canadian steel and aluminum imports. The clash between Stelco and the federal government revolves around the company’s obligations under the Investment Canada Act to retain a specific number of workers in Canada.

Job uncertainties are not limited to Stelco, as other Ontario steelworkers face challenges. Algoma Steel issued layoff notices to about 1,000 workers, attributing the decision to U.S. tariffs and a transition to greener production methods.

Amidst calls to address cheaper foreign steel imports, industry players like Wells advocate for increased tariff-rate quotas to protect Canadian producers from overseas competition, which impacts domestic steel prices.

As per a Wood Mackenzie forecast, the U.S. steel industry is expected to grow this year while Canada faces pressure on export volumes and utilization due to disrupted trade flows.

Despite the challenges, Wells remains hopeful for worker recalls, believing the current layoffs to be temporary amid ongoing trade negotiations and market dynamics.