Stelco’s American parent company holds the legal right to idle production at its Hamilton, Ontario steel mill and cut up to 500 jobs, according to Cleveland-Cliffs CEO Lourenco Goncalves, citing a bitter trade war between Canada and the United States. Prime Minister Mark Carney countered that Ottawa will use all available powers against Cleveland-Cliffs and pursue the company to the fullest extent of the law following the layoff announcement.
Cleveland-Cliffs CEO Cites Trade Conditions for Hamilton Mill Layoffs
In a CBC News interview on Wednesday, Cleveland-Cliffs CEO Lourenco Goncalves defended the decision to idle cold-rolled steel production at the Hamilton facility. He stated that the ability to freely sell steel produced in Hamilton to U.S. buyers served as an underlying condition for acquiring Stelco in November 2024 through a $3.4-billion cash-and-stock deal. Those agreed-upon terms included maintaining significant operations in Hamilton and significant employment levels in Canada.
“We had [the] USMCA in place . . . we had the ability to sell into the United States,” Goncalves said, adding that he would not have acquired Stelco if he knew Canada and the United States would become trade enemies.
Prime Minister Carney Threatens Legal Action Over Employment Obligations
Prime Minister Mark Carney criticized the layoffs on Tuesday, stating that Stelco had betrayed Ontario workers and that Ottawa would use all available powers to ensure the company meets its legal obligations for employment. Carney noted he was very disappointed by the decision to halt cold-rolled steel production temporarily.
Stelco directly linked the decision to cut up to 500 jobs to U.S. President Donald Trump’s trade policies. The Trump administration imposed 50 percent tariffs on foreign steel under Section 232 of the Trade Expansion Act last year, prompting Canada to retaliate with duties on various U.S.-made steel products. Carney specifically singled out Goncalves for applauding those punishing tariffs.
Market Pressures and Rejected Federal Financial Lifelines
Goncalves defended his support for Trump while maintaining support for Canadian steel workers, stating that “America first is not America only.” He noted that foreign steel imports have squeezed the domestic market, leaving no room to accommodate both major producers—Stelco and ArcelorMittal Dofasco—alongside incoming foreign tonnage. Consequently, the company decided to concentrate solely on hot-rolled products, noting there were no orders to turn down for the idled lines.
While Carney stated that federal money is on the table to help companies blunt the impact of the trade war, Goncalves rejected the financial lifeline. The Cleveland-Cliffs chief executive noted that Stelco is not running out of cash, emphasizing that the core issue is the lack of a firm Canada-U.S. trade deal which money cannot resolve.
Frequently Asked Questions About the Stelco Hamilton Layoffs
Why is Stelco idling production at its Hamilton plant?
Stelco plans to cut up to 500 jobs and halt cold-rolled steel production due to market pressures from foreign steel imports and the ongoing trade war between Canada and the United States.
Who owns Stelco?
Stelco is owned by Cleveland-Cliffs, an Ohio-based company that acquired the Hamilton-based steelmaker in November 2024 through a $3.4-billion cash-and-stock transaction.
How is the Canadian government responding to the layoffs?
Prime Minister Mark Carney stated that Ottawa will use all available powers against Cleveland-Cliffs to ensure the company fulfills its legal employment obligations in Canada.
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