Prime Minister Mark Carney has vowed to leverage all available government powers against the U.S. owner of an Ontario steel plant following the announcement of significant layoffs. Stelco, a Hamilton-based company owned by Cleveland-Cliffs in Ohio, attributed its decision to cut approximately 500 jobs to the trade tensions sparked by U.S. President Donald Trump’s imposition of hefty tariffs on foreign steel. These tariffs, imposed under Section 232 of the Trade Expansion Act by the Trump administration last year, prompted retaliatory duties from Canada on various U.S.-made steel products.
Carney, addressing reporters, specifically called out Lourenco Goncalves, the CEO of Stelco, for supporting Trump’s tariff actions against Canadian steel imports. Expressing solidarity with affected workers and families, Carney condemned the company for what he described as a betrayal of its workforce. He emphasized the government’s intention to utilize all available legal mechanisms to address the situation.
Cleveland-Cliffs acquired Stelco in a $3.4 billion deal in November 2024, with former CEO Alan Kestenbaum highlighting the importance of national interests and workforce considerations in the acquisition announcement. Carney expressed deep disappointment over the company’s layoff decision, particularly given the financial support offered by the federal government to assist companies like Stelco during the ongoing trade dispute.
In a memo obtained by CBC News, Stelco’s vice-president of sales, Frederic Fafard, characterized the layoffs as a regrettable but necessary step to safeguard the company’s sustainability in a challenging market environment. While Stelco is idling operations in Hamilton, the company anticipates relocating a significant number of workers to its Lake Erie Works facility in Nanticoke, Ontario. Cleveland-Cliffs has yet to respond to Carney’s mention of potential legal actions against the company.