Prime Minister Mark Carney has declared that the Canadian government will utilize all available measures against the U.S.-based owner of a steel plant in Ontario following the announcement of significant layoffs. Stelco, a company owned by Cleveland-Cliffs in Ohio, directly attributed its decision to cut up to 500 jobs in Hamilton to the trade dispute initiated by U.S. President Donald Trump. The Trump administration had enforced 50% tariffs on foreign steel under Section 232 of the Trade Expansion Act last year, prompting Canada to retaliate with tariffs on several U.S.-made steel products.
During a press briefing on Tuesday, Carney specifically criticized the CEO of the company, Lourenco Goncalves, for supporting Trump’s imposition of punishing tariffs on Canadian steel imports. Carney expressed solidarity with the affected workers and their families, condemning the company for its actions and stating that they have legal responsibilities towards their employees. He emphasized the government’s commitment to utilizing all available legal powers to address the situation.
Cleveland-Cliffs acquired Stelco in Hamilton for $3.4 billion in a cash-and-stock deal finalized in November 2024. Carney expressed disappointment over the company’s choice to lay off workers, emphasizing the government’s readiness to assist companies like Stelco in mitigating the impacts of the ongoing trade conflict.
In a memo revealed by CBC News, 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 mentioned that there are financial resources from the federal government available to support companies like Stelco during this challenging period.
Despite Industry Minister Mélanie Joly’s engagement with Goncalves regarding financial aid, Cleveland-Cliffs did not respond immediately to inquiries about potential legal actions against the company as mentioned by Carney. The company anticipates that a substantial number of affected employees from the Hamilton plant may find opportunities at their Lake Erie Works facility in Nanticoke, Ontario.
