
USA · updated 1h ago · 3 min read
Trump Tariffs on Canadian Steel Cripple Algoma Steel in Sault Ste. Marie
A 50% US steel tariff cripples Algoma Steel in Sault Ste. Marie, prompting mass layoffs. The tariffs are part of Trump's broader Canada trade war, straining cross-border economies.
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7 of 8 outlets skipped it: tariffs treated as taxes raising about $1,000 per US household.
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Tariffs strain border towns
President Donald Trump’s tariffs on Canadian steel exports are crippling an Ontario mill and threatening to devastate the local economy in Sault Ste. Marie, where Algoma Steel has been the “bedrock” of the hometown for over a century.
““The tariffs are so specific to our main industry that it feels personal, it feels like the American administration is attacking Sault Ste. Marie,””
In an interview this month, Mayor Matthew Shoemaker, 37, said, “The tariffs are so specific to our main industry that it feels personal, it feels like the American administration is attacking Sault Ste. Marie,” as he described how Canadians frequently cross the border to live parts of their lives on the other side of the river.
The New York Times reported that the Trump administration’s tariffs threaten to rupture “a century of cross-border life” with Michigan, and it said the town’s close bond with its border twin has been “ruptured as a consequence of the escalating trade war between the two nations.”
The Guardian described how residents in Fort Frances, Ontario, and International Falls, Minnesota, are shopping less at US businesses and encouraging consumers to “buy Canadian instead,” while the mayors of the two towns call each other friends and signed a joint declaration in 2025 affirming that friendship after Trump retook the White House.
Democrats, mayors, and messages
In Fort Frances, Ontario, and International Falls, Minnesota, the Guardian reported that Andrew Hallikas, the mayor of Fort Frances, said residents are “irate” at Trump for bullying Canada and for suggesting Canada should become the 51st US state.
Hallikas told the Guardian, “Please quote me on this. I cannot make this clear enough: we will never become the 51st state,” adding, “We consider ourselves to probably be the best country in the world in which to live, and we’re quite content to remain that way, thank you very much.”

In Washington, Arizona Sen. Ruben Gallego told CBC that a strong showing by Democrats in the November U.S. midterm elections could send a message to the White House, saying, “I think it'll send a message to the White House and to other Republicans that this type of tariff, especially with close friends, is just not something that Americans want.”
Gallego framed the tariffs as unnecessary taxes, telling host Rosemary Barton, “This is just a tax, right?” and adding, “We are adding a tax on a lot of goods that are coming from Canada that are unnecessary.”
What’s at stake next
The Washington Post said the trade war’s tariffs affect “just 6 percent of $715 billion in annual cross-border trade,” but it warned that key industries in states including Maine and Michigan are likely to feel added costs that could complicate GOP efforts to keep control of Congress.
““America’s heartland states like Michigan and Iowa have been some of the worst hit by unfair foreign trade practices, including by Canada,””
The Post reported that the White House argued Trump’s tariffs on Canada will help American workers, with White House spokesman Kush Desai saying, “America’s heartland states like Michigan and Iowa have been some of the worst hit by unfair foreign trade practices, including by Canada.”
CBC reported that Trump told reporters in Ireland he could reach a trade deal with Canada “fairly soon,” and it said his next move in the trade fight is banning the import of Canadian alcohol, motorcycles and various other products into the U.S. beginning Sept. 29.
CBC also reported that Canada is sticking with counter-tariffs on $27.6 billion worth of American goods that went into effect on Tuesday, with duties ranging from 15 to 50 per cent, while it said the U.S. is directing the General Services Administration to remove Canadian-origin products from its “multiple award schedules.”