The CEO of the parent company of Stelco in the U.S. asserts his legal authority to halt production at a steel mill in Hamilton, Ontario, resulting in up to 500 job cuts, citing the ongoing trade dispute between Canada and the U.S. Prime Minister Mark Carney has pledged to utilize all available legal measures against Cleveland-Cliffs, the company that owns Stelco, to enforce their obligations.
In an interview with CBC News, Cleveland-Cliffs CEO Lourenco Goncalves emphasized that the agreement when acquiring Stelco in 2024 included the freedom to sell steel produced in Hamilton to U.S. markets. Goncalves indicated that the ability to access the U.S. market was a key condition for him to acquire Stelco, expressing regret over the strained trade relations between Canada and the U.S.
The decision to lay off up to 500 employees at Stelco, under the ownership of Cleveland-Cliffs, is directly attributed to the trade tensions initiated by U.S. President Donald Trump’s imposition of significant tariffs on foreign steel imports under Section 232. In response, Canada imposed duties on various U.S.-made steel products. Carney criticized Goncalves for supporting Trump’s trade policies affecting Canadian steel imports.
Goncalves defended his support for Trump and emphasized his commitment to Canadian steelworkers, denying any lawsuit notification from the Canadian government. He stressed that his investments in Canada are based on belief in the country and its workforce.
The acquisition of Stelco by Cleveland-Cliffs for $3.4 billion in 2024 was intended to prioritize national interests and recognize the workforce’s importance, as stated by Stelco’s former CEO Alan Kestenbaum during the deal announcement.
Carney expressed disappointment over Stelco’s layoffs due to the temporary halt in cold-rolled steel production in Hamilton. Goncalves justified the decision by citing pressure from foreign steel imports, leading them to focus on hot-rolled products. He clarified that the company’s move was influenced by market conditions and the lack of demand for certain products.
Despite potential financial assistance from the federal government to mitigate trade war impacts, Goncalves indicated that the fundamental issue lies in the absence of a concrete Canada-U.S. trade agreement, emphasizing that financial aid alone cannot address the challenges faced by Stelco.