Prime Minister Mark Carney has pledged to utilize all available resources to address the situation involving the U.S. owner of a steel plant in Ontario that recently announced significant job cuts. Stelco, which is owned by Cleveland-Cliffs based in Ohio, attributed its decision to lay off up to 500 workers in Hamilton to the trade dispute between the U.S. and Canada initiated by President Donald Trump’s administration imposing hefty tariffs on foreign steel imports under Section 232 of the Trade Expansion Act last year. In response, Canada imposed duties on various U.S.-made steel products.
Carney specifically called out Lourenco Goncalves, the CEO of the company, for supporting Trump’s tariff measures on Canadian steel imports. The Prime Minister expressed solidarity with the affected workers and their families, condemning the company for breaching its employment commitments. Carney affirmed the government’s intention to take all necessary actions within the bounds of the law.
Cleveland-Cliffs acquired Stelco in Hamilton through a $3.4 billion cash-and-stock deal in November 2024. Former Stelco CEO Alan Kestenbaum emphasized the importance of the workforce and national interests in the acquisition announcement. Carney expressed disappointment over the company’s layoff decision.
Amid the ongoing trade tensions, Carney mentioned that the federal government has financial support available to assist companies like Stelco in mitigating the trade war’s impact. Stelco’s vice-president of sales, Frederic Fafard, described the layoffs as a regrettable but essential step to ensure the company’s survival in a challenging market environment.
Industry Minister Mélanie Joly reportedly discussed financial aid with Goncalves, as confirmed by a Cleveland-Cliffs spokesperson in communication with CBC News. While Stelco is halting some operations in Hamilton, it anticipates relocating a substantial number of workers to its Lake Erie Works facility in Nanticoke, Ontario. Cleveland-Cliffs has not yet responded to Carney’s mention of potential legal actions against the company.