Cleveland-Cliffs’ CEO has stated that the company will defend itself if faced with legal action from Ottawa following its decision to halt production at a steel mill in Hamilton, leading to potential layoffs of up to 500 employees. This move is attributed in part to the ongoing trade tensions between Canada and the United States.
In response, Prime Minister Mark Carney has emphasized that all available measures will be utilized against Cleveland-Cliffs as it pursues legal action against the Ohio-based firm. Cleveland-Cliffs CEO Lourenco Goncalves highlighted the importance of Stelco’s ability to freely sell steel produced in Hamilton to U.S. buyers, a condition agreed upon during the company’s acquisition in 2024, which included commitments to maintain substantial employment levels and operations in Canada.
Despite the trade war, the Canada-U.S.-Mexico Agreement (CUSMA) remains in effect until 2036. Goncalves expressed that the ability to sell into the U.S. was a critical factor in acquiring Stelco and indicated that the current strained trade relations between the two countries were unforeseen at the time of the purchase.
The decision to cut jobs at Stelco has been directly linked to the trade dispute between President Trump and Canada, with tariffs imposed on foreign steel imports creating challenges for the company. Goncalves has defended his support for Trump’s tariff measures, emphasizing that investments in Canada are made with a belief in the country, its people, and its workforce.
Goncalves explained that market pressures from foreign steel imports have impacted Stelco’s cold-rolled steel production, leading the company to focus on hot-rolled products. While there have been claims that Stelco is turning away orders, Goncalves clarified that there is a lack of viable orders to fulfill.
The CEO reiterated that the core issue lies in the uncertainty surrounding Canada-U.S. trade, rather than a financial shortage. Despite potential financial assistance being offered, Goncalves emphasized that resolving the trade uncertainty is paramount for Stelco’s operations.
