On the 565th day of an ongoing trade dispute between Canada and the United States, the city of Sault Ste. Marie, Ontario, continues to grapple with economic challenges that have reshaped everyday life for its residents. The dispute, marked by steep tariffs imposed by the U.S. on Canadian steel, has led to significant job losses and community strain in this steel-reliant city of approximately 80,000 people.

Since President Donald Trump introduced a 25 percent tariff on Canadian steel in early 2025 — which doubled to 50 percent later that summer — Sault Ste. Marie has found itself on the front lines of a trade war with its southern neighbor. The tariffs severely impacted Algoma Steel, the city’s largest employer and economic backbone for over a century. In December, the company announced layoffs affecting roughly 1,000 workers, effective March 23, dealing a heavy blow to families and local businesses.

Those layoffs reverberated throughout the community. For steelworker Frank DeMarco, the timing was particularly difficult. DeMarco and his wife had just opened a local restaurant, DeMarco’s Boots & Saddles Roadhouse, coinciding with the increased tariffs. Despite initial fears about the future, DeMarco’s job at Algoma was ultimately extended and made permanent, an outcome shared by some other workers. His children, who had also been employed at the steel plant, have since found new opportunities.

Yet, the broader community continues to feel the weight of economic uncertainty. Nonprofits like Save Our Young Adults have seen demand for services double since 2023, reflecting growing hardship among residents. Founder Connie Raynor Elliott noted many recent recipients of aid are former donors now in need themselves, highlighting the widespread impact of job losses and economic contraction.

The lingering economic difficulties have also shaped the city’s upcoming municipal election, set for October 26. Incumbent Mayor Matthew Shoemaker is campaigning on an ambitious plan to build a $250 million multimodal port project, promising to generate more than 2,000 jobs. His challenger, Joel Rowswell, focuses on addressing crime and social disorder linked to prolonged economic stress, asserting that a pervasive sense of negativity is prevalent among residents he encounters.

Reflecting on the city's resilience, many locals recall a similar crisis in the early 1980s, when steelworker layoffs numbered in the thousands and the city’s industrial base shrank dramatically. The current transition at Algoma Steel involves shifting away from traditional coal-based blast furnaces toward electric arc furnaces, a move accelerated by financial strains including tariffs. This transition is expected to reduce the plant’s workforce by about half of its roughly 3,000 employees.

Some former employees have sought retraining and employment in other sectors, including mining. For example, Chris Casagrande secured a new position at a northern gold mine shortly after the layoffs, while others remain on employment insurance, hoping for recall.

Despite the hardships, many residents maintain a cautiously optimistic outlook. At local events and gatherings, like the downtown block party on the eve of the season opener for the Soo Greyhounds junior hockey team, community spirit remains strong. DeMarco emphasized the city’s enduring support networks and a slow but steady path to recovery. "It’s a positive place," he said, underscoring a collective determination to navigate through prolonged adversity.