Prime Minister Mark Carney has vowed to utilize all available government powers against the American owner of a steel plant in Ontario following the announcement of mass layoffs. Stelco, a company owned by Cleveland-Cliffs based in Ohio, attributed its decision to cut up to 500 jobs in Hamilton to the trade dispute initiated by U.S. President Donald Trump, who imposed significant tariffs on foreign steel last year. In response, Canada imposed duties on various U.S.-made steel products.
During a press briefing in Vancouver, Carney specifically called out Lourenco Goncalves, the CEO of the company, for supporting Trump’s tariff policies that have led to the layoffs. Carney expressed solidarity with the affected workers and their families, emphasizing the company’s obligations to its employees and affirming the government’s commitment to pursuing legal actions to the fullest extent.
Cleveland-Cliffs acquired Stelco in a deal valued at $3.4 billion in cash and stock in November 2024. Carney expressed disappointment over the company’s workforce reduction decision, stating that the government is prepared to offer financial assistance to mitigate the impact of the trade conflict.
Meanwhile, a Stelco official described the layoffs as a necessary step to ensure the company’s viability in a challenging market environment. Although some operations in Hamilton will be idled, Stelco anticipates that a considerable number of employees will transition to the company’s facility in Nanticoke, Ontario.
Despite requests for comments on the potential legal actions mentioned by Carney, Cleveland-Cliffs did not respond by the following day. Industry Minister Mélanie Joly has been in contact with Goncalves regarding financial support, as confirmed by a company spokesperson in an email to CBC News.
The situation has sparked concern among workers and local communities, with many facing an uncertain future due to the layoffs. The federal government remains poised to assist companies like Stelco in navigating the challenges posed by the ongoing trade dispute.
