Canadian steelmakers turn to the home market as US tariffs bite

Drop in steel shipments to the US in 2025

60 %

Steel shipments to the US, which once took about 90 per cent of Canada's steel exports, fell 60 per cent in 2025 after Washington raised its tariff from 25 to 50 per cent, according to the Canadian Steel Producers Association.

Steel used in Canada in 2025

51 made in Canada 49 imported

Canadian-made steel rose to 51 per cent of the steel used in Canada in 2025, up from 41 per cent in 2024, according to the United Steelworkers.

What is driving demand

• Mining and energy projects
• AI data centres
• $1 billion in federal loans
• A cap on imported steel

Demand comes mostly from western Canada, from mining, energy and AI data centre projects, helped by $1 billion in federal loans and a cap on imported steel.

Algoma layoffs in Ontario

1,000 workers

The recovery is uneven: Algoma, the largest producer, said in December it would lay off 1,000 workers in Ontario, and the union wants a tighter cap on imported steel.