Prime Minister Mark Carney has pledged to utilize all available resources to address the situation involving an Ontario steel plant owned by a U.S. company that recently announced significant job cuts. Stelco, under the ownership of Cleveland-Cliffs based in Ohio, attributed its decision to cut around 500 jobs in Hamilton to the trade tensions sparked by U.S. President Donald Trump’s tariffs on foreign steel, reciprocated by Canada with duties on various U.S.-made steel items.
Carney criticized Lourenco Goncalves, the CEO of the company, for supporting Trump’s imposition of tariffs on Canadian steel imports. He expressed solidarity with the affected workers and families during a news conference in Vancouver, emphasizing the company’s obligations towards its employees and vowing to pursue all available legal avenues to address the situation.
Cleveland-Cliffs acquired Stelco in a deal worth $3.4 billion in cash and stock in November 2024. Carney expressed disappointment over the company’s decision to lay off workers, highlighting the importance of supporting national interests and the workforce. The government has offered financial assistance to companies like Stelco to mitigate the impact of the ongoing trade dispute.
In response to the layoffs, Stelco’s vice-president of sales described the actions as necessary to ensure the company’s survival in a challenging market environment. While some operations in Hamilton are being idled, it is anticipated that a substantial number of employees may find opportunities at the company’s Lake Erie Works facility in Nanticoke, Ontario.
Despite these developments, Cleveland-Cliffs did not provide a comment in response to Carney’s mention of potential legal measures against the company. Industry Minister Mélanie Joly has engaged with Stelco’s leadership regarding financial support, as confirmed by a company spokesperson in communication with CBC News.