US, Canadian steelworkers hit with layoffs amid tariff uncertainty

Cleveland-Cliffs Inc. said it will lay off more than 1,200 steel and mine workers in Michigan and Minnesota, citing market conditions and weak automotive production in the U.S.

The Cleveland-based steelmaker’s announcement comes after a steelmaker in Canada said it was eliminating about 140 workers’ jobs last month due to the effect of U.S. tariffs.

President Donald Trump imposed 25% steel and aluminum tariffs on all countries on March 12, which may go higher if the White House follows through with reciprocal duties on April 2.

Cleveland-Cliffs officials said the job cuts in Michigan and Minnesota are focused on adjusting capacity as auto manufacturers slow production amid uncertain demand for new cars in 2025.

“We believe that, once President Trump’s policies take full effect and automotive production is re-shored, we should be able to resume steel production at Dearborn,” Patricia Persico, a spokeswoman, told Bloomberg on Tuesday.

Cleveland-Cliffs said it will lay off 600 workers at its Dearborn Works plant in Michigan, along with 630 workers from a mining operation in Virginia, Minnesota.

Cleveland-Cliffs has issued Worker Adjustment and Retraining Notification Act notices in both states and said the layoffs will begin July 15.

Related: Steel, aluminum tariffs may hurt auto industry, supply chain risk expert says

Auto services provider Cox Automotive said tariffs threaten to dampen U.S. auto sales this year.

The Atlanta-based analytics and software company anticipates 15.6 million new vehicles will be sold in the U.S. in 2025, down 4.3% from the 16.3 million it forecast several months ago.

“Tariffs enacted across North America as proposed – depending on how long they last – could upend both the U.S. auto market and the larger economy,” Cox said in a report released Wednesday. “In early March, Cox Automotive Senior Economist Charlie Chesbrough noted, ‘Just as the industry seemed to be finding stable ground, new obstacles are thrown in place. Will tariffs be embraced? And for how long? That’s the industry’s big question right now. Higher prices and border disruptions could result in lower volume and upend vehicle pricing. Our forecast of 16.3 million new-vehicle sales in 2025, at least at this moment, is now in question.’”

Canadian officials also blamed tariffs for hundreds of steelworkers in Canada being laid off last month.

“Canada Metal Processing Group (MPG) and its subsidiaries, Ivaco Rolling Mills, Sivaco, and Infasco, are announcing the difficult but necessary steps to respond to the current challenging market environment and the threat of incoming tariffs from the United States on steel and steel derivatives,” the company said in a Feb. 24 news release. 

MPG Canada has operations in Ontario and Quebec, where it employs more than 1,600 workers.

“These measures will help maintain the majority of MPG Canada’s footprint and workforce while reacting to the impact that these threats are already having on the company’s demand for its products destined directly and indirectly, via our Canadian customers, to U.S. customers,” the company said.

Sault Ste. Marie, Canada-based Algoma Steel has laid off about 20 people due to tariff-related loss of customers, CEO Michael Garcia told Reuters.

Marty Warren, national director of the United Steelworkers in Canada (USW Canada), said he expects layoffs to escalate if the Trump administration imposes reciprocal tariffs next week.

USW Canada represents about 225,000 steelworkers across the nation.

“With the full-blown tariffs coming in on April 2 … it’ll probably affect 100,000 of our members,” Warren told Reuters.

Related: Tariffs could lead Mexico into recession, report says

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