The CEO of Stelco’s parent company in the United States asserts his legal right to halt operations at a steel mill in Hamilton, Ontario, leading to around 500 job cuts, citing the ongoing trade dispute between Canada and the U.S. This statement comes after Prime Minister Mark Carney pledged to utilize all available means against Cleveland-Cliffs to enforce the law fully.
During an interview with CBC News, Cleveland-Cliffs CEO Lourenco Goncalves emphasized that Stelco’s freedom to sell steel produced in Hamilton to American buyers was a key condition agreed upon during the acquisition of Stelco in 2024. Goncalves highlighted the importance of maintaining substantial employment levels and operational activities in Hamilton, which were integral to the purchase deal.
Goncalves expressed regret, stating that the deteriorating trade relationship between Canada and the U.S. was unforeseen during the acquisition, emphasizing the significance of the ability to sell into the U.S. market. The layoffs at Stelco, linked to the trade tensions, were directly associated with the trade war initiated by U.S. President Donald Trump, who imposed significant tariffs on foreign steel imports under Section 232 of the Trade Expansion Act, prompting retaliatory actions from Canada.
While Prime Minister Carney criticized Goncalves for supporting Trump’s tariff measures, the CEO defended his stance, emphasizing his commitment to Canadian steelworkers. Despite the layoffs, Goncalves clarified that he had not been served with a lawsuit from the Canadian government and stressed that his investments in Canada were based on belief in the country and its workforce.
Cleveland-Cliffs acquired Stelco in a multi-billion-dollar deal, with the transaction focused on upholding national interests and recognizing the workforce’s importance. Carney expressed disappointment over the layoffs, while Goncalves justified the decision by highlighting the pressure from foreign steel imports on Stelco’s operations and the need to focus on specific steel products.
Responding to inquiries about potential orders, Goncalves mentioned the lack of existing orders, indicating a market constraint. Despite reports of customers willing to place orders, concerns about the steel industry’s challenges persisted. While financial aid from the federal government was available, Goncalves stated that the core issue lay in the absence of a solid Canada-U.S. trade agreement, emphasizing that monetary assistance alone could not resolve the underlying problem.