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Canada’s steel workers are facing serious challenges due to the unjust and unprovoked U.S. tariffs and global trade disruptions. In response, the federal government is taking continued action to protect Canada’s steel workers.
Today, local MP Terry Sheehan welcomed Patty Hajdu, Minister of Jobs and Families and Minister responsible for the FedNor, to Sault Ste. Marie to announce a new targeted investment totalling $70 million over three years, from 2025-2026 to 2027-2028, to support Canadian steel workers impacted by trade disruptions. This support will be delivered in partnership with directly affected provinces through existing Labour Market Development Agreements (LMDAs).
This investment will enable us to help up to 10,000 Canadians access career services, skills training and re-employment supports tailored to the needs of the steel sector. Steel workers who face job loss will be offered upskilling or retraining to transition to new roles within the industry or in related sectors.
In addition, workers may be eligible to access other complementary supports such as the Employment Insurance (EI) Work-Sharing Program, which allows employees to work reduced hours at their job while receiving EI benefits. This helps employers retain staff and avoid layoffs during periods of economic downturn.
The federal government also announced today new measures to reduce foreign steel imports and apply new tariffs to protect Canadian producers, prevent harmful trade diversion, and create a strong share of the domestic market for Canadian steel. These include:
- $1 billion to help steel companies grow domestic production, improve competitiveness, and create jobs in key sectors like defence; and
- Providing targeted support through the Regional Tariff Response Initiative and BDC’s Pivot to Grow, to help small and medium-sized steel firms manage liquidity challenges; and
- Updating federal procurement to prioritize Canadian steel in nation-building projects, from energy infrastructure to housing and defence.
“As the MP for a proud steel town, and as co-chair of the All-Party Steel Caucus, I am glad that our government is stepping up to help support workers. The industry is the backbone of local economy, and these targeted investments will support both producers and the steelworkers.”, Terry Sheehan, Member of Parliament for Sault Ste. Marie-Algoma
“Steel workers are vital to Canada’s economy, and this industry deserves Canada’s support in the face of unjust trade disruptions. We will continue to take action to protect jobs and ensure that Canadians aren’t facing these challenges alone.”, The Hon. Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario
Did you Know?
- Canadian steel producers are highly trade-exposed, exporting just over 50 per cent of their annual production in 2024, with 90 per cent exported to the U.S.
- According to the latest labour market data from Employment and Social Development Canada, it is estimated that between 5,000 and 6,600 steel sector workers will lose their jobs and require intensive employment supports over the next 12-18 months.
- The Canadian Steel Producers Association indicated that the steel industry has already experienced nearly 1,000 job losses. There were approximately 23,500 total employees in the sector in 2024.
- This new targeted investment through LMDAs is part of the federal government’s broader strategy to respond quickly and effectively to shifting labour market conditions. This targeted measure is designed to help workers stay employed, avoid layoffs and transition to new jobs where needed.
- As trade negotiations continue, the federal government remains focused oncontinuing to work with provinces and territories to protect Canadian jobs, support key industries and businesses, and ensure that workers impacted by tariffs have access to the supports they need.
- LMDAs are one of the Government of Canada’s most effective tools for supporting workers through economic shifts. They provide targeted employment assistance and training services to eligible Employment Insurance-insured workers to help them gain the skills they need to stay employed or find new work. In the last pre-pandemic fiscal year (2019-2020), approximately 968,000 individuals received training and other supports, with 74% finding employment.
- A recent evaluation of the LMDAs showed that for each $1 invested in skills development, $1.54 in social benefits was generated and that for each person who received LMDA supports.
- Today’s announcement also builds on the recent tariff relief measures introduced by the federal government on June 19, 2025 to respond to global trade disruptions in the steel industry.
