Layoffs announced for eastern Ontario steel plant, citing U.S. tariffs

More than 150 workers at a steel plant in L’Orignal have been laid off due to the trade war and tariffs on steel and aluminum. CTV’s Austin Lee reports.

A major Canadian steel manufacturer with a plant in eastern Ontario has announced layoffs in light of U.S. President Donald Trump’s tariffs on steel and aluminum products, an early indicator of the effects the trade war could have on the Canadian economy.

The Canada Metal Processing Group (MPG), part of The Heico Companies, announced a workforce reduction of 140 employees across its three manufacturing facilities, including Ivaco Rolling Mills in L’Orginal, east of Ottawa. The company also operates a plant east of Montreal and another near London, Ont.

The United Steelworkers tell CTV News the layoffs are impacting up to 150 workers at Ivaco, with 30 receiving permanent layoffs and another 120 being temporarily furloughed for one week.

There are a total of 472 workers at the plant, the union says.

“This was an extremely difficult decision for our company, and not one that was made lightly, but necessary for the business in the current environment,” said MPG Canada President Matt Walker in a news release.

“Our employees are the backbone of our operations. They work hard, day in and day out, to create steel products which are recognized for their quality and good customer service while being an integral part of the Canada-U.S. supply chain.”

Canada and other countries were hit with 25 per cent U.S. tariffs on steel and aluminum imports into the United States on Tuesday — as part of Trump’s broader efforts to realign global trade.

Ivaco Rolling Mills produces hot rolled wires and steel billets, materials often used in construction.

The company says it will also implement cost saving measures and the cancellation or pause of some projects. It cited a “soft market” in 2024 leading to weak North American demand and the “increased challenge of unfair trade imports into Canada” as also having a serious impact on its business.

“While it is impossible at this juncture to predict how long these actions by the United States will last, the Canadian government must be prepared to react quickly to safeguard the long-term viability of Canadian steel product manufacturers, and the collective job security of our employees,” Walker wrote.

The company adds it has been calling on the Canadian government to implement retaliatory measures, provide additional support for workers and promote buying domestic steel.

“The United Steelworkers union, in Canada and the U.S. condemns the Trump administration’s reckless decision to impose these tariffs, which threaten the stability of our industries, put thousands of jobs at risk and jeopardize economic security on both sides of the border,” said Kevon Stewart, director for United Steelworkers District 6, representing the union’s members in Ontario and Quebec in a news release.

“This is not a matter of fair trade. It’s about political maneuvering at the expense of working people. Steelworkers are ready to fight back against these unjust tariffs.”

Analysts and experts have warned the tariffs could have significant impacts on the industry on both sides of the border.

According to the Canadian Steel Producers Association, there is $20 billion in trade of steel between the two countries and 40 per cent of Canada’s steel imports comes from the United States.

Canada exports 10 million tonnes of steel to the U.S. annually, supporting 23,000 Canadian jobs, according to a report by law firm Gowling WLG.

Plant a “pillar” of the community

Longtime L’Orginal resident Pierre Lecontte says the plant has been in the community for over 30 years and has provided good jobs.

“That’s the pillar here. That’s for sure,” he said.

“It would be scary if that plant ever closes. They pay a lot of taxes for this community.”

Lecontte worries the tariffs could lead to further layoffs and closures.

“It’s all we hear about right now, those tariffs. They are going to hurt everything. Not only Ivaco, it’s going to hurt the whole economy,” he said.

With files from The Canadian Press and CTV’s Austin Lee