The CEO of Stelco’s parent company in the U.S. asserts his legal right to halt production at a Hamilton steel mill, leading to potential layoffs of 500 employees, citing the ongoing trade tensions between Canada and the U.S. Prime Minister Mark Carney stated that Ottawa will utilize all available legal avenues against Cleveland-Cliffs, emphasizing the company’s obligations.
In a recent CBC News interview, Cleveland-Cliffs CEO Lourenco Goncalves highlighted the importance of Stelco’s ability to sell steel from Hamilton to U.S. markets, a condition agreed upon during the acquisition of Stelco in 2024. Goncalves expressed regret over the current trade hostilities between Canada and the U.S., stating that the ability to export to the U.S. was a crucial factor in acquiring Stelco.
The layoffs at Stelco, owned by Cleveland-Cliffs, are directly linked to the trade dispute initiated by U.S. President Donald Trump through imposing tariffs on foreign steel. Carney criticized Goncalves for supporting Trump’s tariffs on Canadian steel imports. Goncalves defended his position, emphasizing his commitment to Canadian steelworkers and investment in the country.
Cleveland-Cliffs acquired Stelco in a substantial deal in 2024, underlining the importance of workforce and national interests. Carney expressed disappointment over the job cuts, while Goncalves defended the decision, attributing it to pressures from foreign steel imports in the Canadian market.
Despite reports of potential orders, Goncalves stated that there were no actual orders to fulfill, leading to the decision to focus on hot-rolled products. The prime minister mentioned financial aid available to companies like Stelco to mitigate the trade war’s impact, but Goncalves indicated that the core issue lies in the absence of a comprehensive Canada-U.S. trade agreement.