The CEO of the parent company of Stelco in the U.S. stated that he has the legal right to halt production at a steel mill in Hamilton, Ontario, resulting in the potential loss of 500 jobs. This decision is partly influenced by the ongoing trade tensions between Canada and the United States.
Following this announcement, Prime Minister Mark Carney emphasized that the Canadian government will utilize all available legal measures against Cleveland-Cliffs as it pursues the company to the fullest extent of the law.
In a recent interview with CBC News, Cleveland-Cliffs CEO Lourenco Goncalves highlighted that Stelco’s ability to freely sell steel produced in Hamilton to U.S. buyers was a fundamental requirement agreed upon during the company’s acquisition. This included commitments to maintain substantial employment levels in Canada and significant operations in Hamilton.
Goncalves expressed that the ability to sell steel into the United States was a crucial factor in his decision to acquire Stelco, emphasizing that he would not have made the acquisition if he had foreseen the deterioration of trade relations between Canada and the U.S.
The decision to cut up to 500 jobs at Stelco, owned by Cleveland-Cliffs, was directly attributed to the trade conflict initiated by U.S. President Donald Trump’s imposition of 50% tariffs on foreign steel under Section 232 of the Trade Expansion Act. In response, Canada imposed duties on various U.S.-made steel products.
Carney criticized Goncalves for supporting Trump’s tariff actions against Canadian steel imports. However, Goncalves clarified that his backing of Trump did not conflict with his support for Canadian steelworkers and mentioned that he had not been served with a lawsuit from the Canadian government.
Cleveland-Cliffs acquired Stelco in a $3.4 billion deal in November 2024, emphasizing the preservation of national interests and recognizing the workforce’s importance in the transaction.
While Carney expressed disappointment over the layoffs due to the temporary halt in cold-rolled steel production in Hamilton, Goncalves defended the decision, citing pressure on Stelco from foreign steel imports tightening the domestic market. Goncalves explained that concentrating on hot-rolled products was a strategic move given the current market conditions.
Although there are claims that Stelco has potential customer orders, Goncalves mentioned that the company cannot decline orders that do not exist. The CEO emphasized that the primary issue lies in the absence of a firm trade agreement between Canada and the U.S., rather than financial difficulties.
Despite the government’s financial assistance offer to mitigate the impact of the trade conflict, Goncalves stated that what Stelco truly requires is a stable Canada-U.S. trade deal, as no amount of money can resolve the underlying issue.
