Prime Minister Mark Carney has declared that the Canadian government will utilize all available measures against the U.S. owner of an Ontario steel plant following the announcement of numerous layoffs. Stelco, a company owned by Cleveland-Cliffs based in Ohio, explicitly tied its decision to cut up to 500 jobs in Hamilton to President Donald Trump’s trade dispute with Canada. The Trump administration imposed 50 percent tariffs on foreign steel last year under Section 232 of the Trade Expansion Act, prompting retaliatory duties from Canada on a variety of U.S.-made steel goods.
During a media briefing, Carney specifically called out Lourenco Goncalves, the CEO of the company, for supporting Trump’s imposition of harsh tariffs on Canadian steel imports. Expressing sympathy for the affected workers and their families, Carney expressed disappointment in the company for its actions and emphasized the government’s commitment to enforcing all applicable laws to address the situation.
The acquisition of Stelco by Cleveland-Cliffs in a $3.4 billion cash-and-stock deal in November 2024 was mentioned. Former Stelco CEO Alan Kestenbaum stressed the importance of the workforce in the transaction announcement. Carney expressed his profound disappointment at the company’s choice to lay off employees.
In a memo obtained by CBC News, Frederic Fafard, Stelco’s vice president of sales, described the layoffs as a regrettable but necessary step to safeguard the company’s survival in a challenging market environment. Carney disclosed that the federal government has allocated financial resources to assist firms like Stelco in mitigating the effects of the ongoing trade conflict.
Cleveland-Cliffs acknowledged that although some operations at Stelco’s Hamilton plant would be suspended, a substantial number of employees could potentially be relocated to the company’s Lake Erie Works facility in Nanticoke, Ontario. Cleveland-Cliffs did not comment on Carney’s mention of potential legal action against the company when contacted on Wednesday.