Canada Boosts Domestic Steel Market Share
Canadian steelmakers pivoted to domestic demand following a 50 percent increase in United States tariffs in June 2025.
Updated on Oct. 16, 2026 in International Trade
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Canadian steel companies have captured a larger share of the domestic market after United States tariffs on imported steel jumped to 50 percent in June 2025. This shift forced domestic producers to focus on local demand, while exports to the United States fell by 60 percent.
Why it matters
The pivot follows major trade barriers, with Canadian firms now relying on internal demand from mining, energy, and AI data centre projects. To support this transition, the federal government provided $1 billion in loans to the steel, aluminum, and copper industries in May 2026.
In 2025, the share of steel consumed in Canada that was produced domestically rose to 51 percent, up from 41 percent in 2024. Canadian producers maintain an annual output of approximately 13 million tonnes of primary steel.
The players
Algoma
This major Canadian steel producer announced 1,000 layoffs in December 2025.
Cleveland-Cliffs
This steel producer acquired the Canadian steelmaker Stelco in 2024.
Tenaris
This company invested $306 million to expand its production facility in Sault Ste Marie, Ontario.
The details
Companies like Tenaris have invested $306 million to expand production capacity in Sault Ste Marie, Ontario, even as the sector faces consolidation and labor instability, including 1,000 layoffs at Algoma in December 2025. Cleveland-Cliffs, which acquired Stelco in 2024, remains a major player in the evolving Canadian market.
Timeline
Domestic steel production share was 41 percent in 2024.
United States import tariffs on steel rose to 50 percent in June 2025.
Algoma announced 1,000 layoffs in December 2025.
The federal government announced $1 billion in industry loans in May 2026.
Cleveland-Cliffs reports quarterly earnings on October 19, 2026.
Market Landscape
This pivot reflects a structural adjustment within the North American steel supply chain following the 50 percent United States tariff on imported steel. Canadian firms are now moving to consolidate domestic market share to offset the 60 percent decline in exports to the United States.
The shift toward domestic production aims to stabilize the supply of materials for critical Canadian projects like mining and data centres. However, the consolidation of the industry and recent layoffs at major mills may impact local economies in manufacturing hubs.
The takeaway
Canadian industry is successfully pivoting toward domestic supply chains to survive external tariff pressures. Readers should note that while this shift supports local infrastructure projects, the long-term impact on employment remains a challenge for the steel sector.
What happens next
Cleveland-Cliffs is scheduled to report its quarterly earnings on October 19, 2026.
Further reading
For more context on regional trade shifts, visit the International Trade section.
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