Prime Minister Mark Carney has vowed to utilize all available measures against the U.S. owner of a steel plant in Ontario following the announcement of significant job cuts. Stelco, a company 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. In response, Canada imposed duties on various steel products imported from the U.S.
During a press briefing in Vancouver, Carney specifically called out Lourenco Goncalves, the CEO of the company, for supporting Trump’s actions. Carney expressed solidarity with the affected workers and their families, condemning the company’s actions as a betrayal. He emphasized that the company has responsibilities towards its employees and vowed to take legal actions to the fullest extent possible.
Cleveland-Cliffs acquired Stelco in Hamilton in a deal worth $3.4 billion in cash and stock in November 2024. Carney expressed disappointment over the company’s layoff decision. He also mentioned that the federal government has financial support available to help companies like Stelco mitigate the effects of the ongoing trade conflict.
In a communication obtained by CBC News, Stelco’s vice-president of sales, Frederic Fafard, described the layoffs as a regrettable but necessary step to ensure the company’s survival amidst a challenging market environment. While some operations in Hamilton are being idled, the company anticipates that a significant portion of the workforce will be relocated to its facility in Nanticoke, Ont.
Despite the developments, Cleveland-Cliffs did not offer an immediate response to inquiries regarding the potential legal actions mentioned by Carney against the company.