The CEO of the American parent company of Stelco asserts his legal authority to halt production at a steel mill in Hamilton, Ontario, leading to the potential layoff of 500 workers, partly due to the ongoing trade tensions between Canada and the U.S.
The CEO’s comments come in response to Prime Minister Mark Carney’s statement that Ottawa will take all necessary actions against Cleveland-Cliffs to enforce legal measures. In an interview, Cleveland-Cliffs CEO Lourenco Goncalves explained that Stelco’s ability to sell steel from Hamilton to U.S. markets was a key condition of its acquisition in 2024, emphasizing the importance of maintaining employment levels and operations in Canada.
Goncalves expressed regret over the deteriorating trade relations between Canada and the U.S., highlighting that the ability to freely trade under the USMCA was a critical factor in acquiring Stelco. He defended his support for steelworkers in Canada despite backing Trump’s tariff decisions and clarified that he had not been notified of any legal actions from the Canadian government.
The decision to cut up to 500 jobs at Stelco was directly attributed to the trade dispute initiated by President Trump, who imposed tariffs on foreign steel, prompting retaliatory measures from Canada. Carney criticized Goncalves for endorsing Trump’s tariffs on Canadian steel imports.
Goncalves defended the layoffs, citing the pressure on Stelco from foreign steel imports and the constraints in the domestic market. He explained the shift in focus to hot-rolled products due to market limitations and clarified that the company was not turning away orders as there were none to decline.
While the Canadian government offered financial assistance to mitigate the impact of the trade war, Goncalves stated that the core issue lies in the absence of a concrete Canada-U.S. trade agreement, emphasizing that financial aid was not the solution to the challenges faced by Stelco.