Algoma Steel, one of Canada's largest steel producers, on Monday said it will lay off approximately 1,000 workers due to severe financial pressure from "unprecedented" U.S. tariffs, local media reported.

The company, based in Ontario province's Sault Ste. Marie, is one of the country's top integrated steel producers and a major regional employer with a workforce of around 2,700 people, with the layoffs representing more than a third of its staff.

According to the report, the company said the 50 percent tariffs imposed by the United States have "fundamentally altered the competitive landscape" and sharply limited its access to the U.S. market. The layoffs are scheduled to take effect on March 23, 2026.

In September, Algoma Steel received CA$500 million (around $360 million) in federal and provincial loan assistance to help it cope with the U.S. tariffs.

Ontario's Minister of Economic Development, Job Creation and Trade, Vic Fedeli, said the province is activating a special support center to provide retraining programs for impacted workers.

The minister called on the federal government to "speed up procurement to use Ontario steel to build pipelines, critical infrastructure, ships and other military and defense equipment."