$500 Million in September. 1,000 Layoffs in December.

Algoma announced it is closing its blast furnace and coke-making operations and issuing approximately 1,000 layoff notices effective March 23, 2026. CEO Michael Garcia stated that access to the US market was shattered six months ago when President Trump imposed 50% tariffs on steel imports, effectively closing off a market that has been essential to the company's viability for generations. The company reported almost half a billion dollars in losses last quarter as the tariffs effectively shut it out of the US market.

The timing reveals the mismatch between policy response and market reality. In September, Algoma received $500 million in financing from federal and provincial governments through the Large Enterprise Tariff Loan program to help limit disruptions to its workforce. Three months later, the layoffs arrived anyway. Union president Bill Slater noted that some layoffs would have happened eventually with the electric arc furnace transition, but they would have been at least a year from now instead of now.

For US manufacturers relying on Canadian steel, Algoma's contraction tightens North American capacity at the worst possible time. The company produces steel plate for construction, infrastructure, and manufacturing. When a major supplier cuts production by 40%, buyers face longer lead times, higher prices, and reduced flexibility. Sault Ste. Marie's population is about 72,000, making these layoffs significant for the entire community. The economic ripple extends through the regional supply chain that depends on steel mill operations.

For non-US companies, particularly those in construction and manufacturing sectors across North America and globally, the broader pattern matters more than the specific layoffs. German giant ThyssenKrupp Steel reached a deal with its union to scale back production and cut or outsource 11,000 jobs out of a workforce of 26,000. The global steel industry has been dealing with oversupply issues beyond just tariffs. When multiple major producers simultaneously reduce capacity, the survivors gain pricing power but buyers lose negotiating leverage.

Electric arc furnaces are far more labour-efficient than blast furnaces, with analyses showing the EAF shift would translate into about 1,000 permanent job losses even in a best-case trade scenario. CEO Garcia stated the company recognized the need to accelerate cost reduction plans well before tariffs came into play, viewing the electric arc furnace as key to securing its future. The tariffs accelerated an inevitable transition but compressed the timeline from manageable to catastrophic for workers and supply chains.

The broader issue extends beyond Canadian steel. Companies built supply chains assuming gradual technological transitions with government support buffering employment impacts. Garcia acknowledged that without the EAF transition opportunity and liquidity support, Algoma would have experienced an even darker day months ago, most likely its last. When trade policy forces billion-dollar structural changes to happen in months instead of years, half a billion in government support buys time but doesn't prevent the inevitable capacity reduction. Supply chains optimized around stable production from established suppliers can't quickly absorb a 40% output cut from a major regional producer, even when everyone sees it coming.

In a world of black swans and cascading disruptions, this is what resilience in action looks like.