Hit hard by U.S. tariffs, Canada’s Algoma Steel (ASTL) has announced that it is laying off 1,000 workers.
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The company, based in Northern Ontario, currently employs about 2,700 people. With nearly all of the company’s major customers situated in the U.S., Algoma Steel has been devastated by the 50% import duties imposed on Canadian steel products by U.S. President Donald Trump.
“These tariffs have fundamentally altered the competitive landscape and sharply limited our ability to access the U.S. market. As a result of these pressures, Algoma has been forced to conclude its long history as an integrated steel manufacturer and close its blast furnace and coke-making operations in early 2026,” said the company in a statement issued to media.
Algoma Steel’s Transition Plan
Algoma Steel said it has a transition plan in place to help it evolve in the wake of the U.S. tariffs. Management has said that the current situation is forcing it to transition to its electric arc-furnace steelmaking a year earlier than planned.
Algoma Steel has received $500 million in loan assistance from Canada’s government to help the company transition and cope with the impact of U.S. tariffs. Algoma Steel said on Dec. 1 that the layoffs will help ensure the company is viable over the long term.
Is ASTL Stock a Buy?
The stock of Algoma Steel has a consensus Moderate Buy rating among three Wall Street analysts. That rating is based on one Buy and two Hold recommendations issued in the last three months. The average ASTL price target of $6.08 implies 52.38% upside from current levels.
