Prime Minister Mark Carney has pledged to utilize all available measures against the U.S. owner of a steel plant in Ontario that recently announced a significant number of job cuts. Stelco, owned by Cleveland-Cliffs based in Ohio, directly attributed its decision to lay off up to 500 workers in Hamilton to the trade dispute between the U.S. and Canada instigated by President Donald Trump’s imposition of 50% tariffs on foreign steel under Section 232 of the Trade Expansion Act last year. In response, Canada has imposed tariffs on various U.S.-made steel products.
During a press briefing on Tuesday, Carney specifically called out Lourenco Goncalves, the CEO of the company, for supporting Trump’s tariff measures on Canadian steel imports to the U.S. Carney expressed solidarity with the affected workers and their families, criticizing the company for failing to uphold its employment commitments. He emphasized the government’s determination to enforce all applicable powers and pursue legal action against the company.
Cleveland-Cliffs acquired Stelco, based in Hamilton, in a $3.4 billion cash-and-stock deal finalized in November 2024. In a prior announcement, Stelco’s former CEO, Alan Kestenbaum, highlighted the deal’s focus on national interests and the importance of the workforce. Carney expressed disappointment over the company’s choice to lay off employees.
In an internal memo obtained by CBC News, Stelco’s vice-president of sales, Frederic Fafard, described the layoffs as a regrettable but necessary step to ensure the company’s survival amidst a challenging market environment. Carney mentioned the availability of federal government funding to assist companies like Stelco in mitigating the repercussions of the ongoing trade conflicts.
According to a statement from a Cleveland-Cliffs spokesperson in response to an email inquiry by CBC News, Industry Minister Mélanie Joly has engaged with Goncalves regarding potential financial aid. The spokesperson mentioned that while Stelco is halting certain operations in Hamilton, a considerable number of employees are expected to transition to the company’s Lake Erie Works facility in Nanticoke, Ontario.
As of Wednesday, Cleveland-Cliffs had not responded to inquiries about Carney’s statements regarding possible legal actions against the company.