Prime Minister Mark Carney has vowed to utilize all available government tools against the U.S. owner of an Ontario steel plant following the announcement of significant layoffs. Stelco, which is owned by Cleveland-Cliffs based in Ohio, attributed its decision to cut up to 500 jobs in Hamilton to the trade tensions sparked by U.S. President Donald Trump’s tariff policies on foreign steel. Last year, the Trump administration imposed hefty tariffs on foreign steel under Section 232 of the Trade Expansion Act, prompting Canada to retaliate by imposing duties on various U.S.-made steel products.
During a press briefing in Vancouver, Carney specifically called out Lourenco Goncalves, the CEO of the company, for supporting Trump’s imposition of punishing tariffs on Canadian steel imports. Carney expressed solidarity with the affected workers and their families, accusing the company of betrayal. He emphasized that Stelco has obligations towards employment and stated the government’s intent to fully enforce all available powers and pursue legal action against the company.
Cleveland-Cliffs acquired Stelco in Hamilton through a $3.4 billion cash-and-stock deal finalized in November 2024. The then-CEO of Stelco, Alan Kestenbaum, highlighted the importance of the workforce and national interests in the acquisition announcement. Carney expressed deep disappointment over the company’s layoff decision.
In a memo obtained by CBC News, Stelco’s vice-president of sales described the layoffs as a regrettable but essential measure to ensure the company’s survival in a challenging market environment. Carney disclosed that the federal government has financial support available to assist companies like Stelco in mitigating the impacts of the ongoing trade disputes.
Industry Minister Mélanie Joly reportedly engaged with Goncalves regarding potential financial assistance, as confirmed by a spokesperson from Cleveland-Cliffs in an email to CBC News. While Stelco is idling part of its operations in Hamilton, the company anticipates that a considerable number of workers may find opportunities at its Lake Erie Works facility in Nanticoke, Ontario. Cleveland-Cliffs did not provide an immediate response to Carney’s mention of potential legal actions against the company.