The CEO of Stelco’s American parent company has stated that they will take legal action to defend themselves if Ottawa chooses to sue following the decision to halt production at a steel mill in Hamilton, resulting in potential layoffs of up to 500 employees. This move is attributed in part to the ongoing trade tensions between Canada and the U.S.
These remarks come in response to Prime Minister Mark Carney’s assertion that Ottawa will leverage all available resources against Cleveland-Cliffs as it pursues legal action against the Ohio-based firm. In a recent interview with CBC News, Cleveland-Cliffs CEO Lourenco Goncalves emphasized that Stelco’s ability to freely sell steel produced in Hamilton to U.S. buyers was a critical condition agreed upon during the company’s acquisition in 2024, which included the stipulation of maintaining substantial employment levels in Canada and significant operations in Hamilton.
Goncalves highlighted that the Canada-U.S.-Mexico Agreement (CUSMA) was already in effect at the time of the acquisition, enabling the sale of steel into the United States. Despite the ongoing trade dispute, CUSMA remains valid until 2036, although renewal talks were halted by the U.S. in July.
Regarding the layoffs at Stelco, which are directly linked to the trade war initiated by President Donald Trump, the company attributed the decision to the imposition of 50% tariffs on foreign steel by the Trump administration under Section 232 of the Trade Expansion Act. In response, Canada imposed duties on various U.S.-made steel products.
Goncalves defended his stance of supporting Trump’s tariffs, stating that his actions were not contradictory to his support for Canadian steelworkers. He emphasized that his investments in Canada were made with a belief in the country, its people, and its workforce.
Furthermore, Goncalves explained that the influx of foreign steel imports into Canada had created market pressure on Stelco’s cold-rolled steel production. He clarified that the company decided to focus on hot-rolled products due to market conditions and denied claims of turning down existing orders, stating that there was a lack of viable orders to fulfill.
While Carney proposed financial assistance to mitigate the impact of the trade war, Goncalves emphasized that the core issue was the uncertainty in Canada-U.S. trade relations rather than a financial shortfall within Stelco.