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The chief executive officer of Stelco’s American parent company says he has every legal right to idle production at a steel mill in Hamilton, Ont., resulting in up to 500 layoffs, due in part to the bitter trade war between Canada and the U.S.
His remarks follow comments from Prime Minister Mark Carney that Ottawa will “use all powers that we have” against Cleveland-Cliffs as it pursues the company to the “fullest extent of the law.”
In an interview with CBC News on Wednesday, Cleveland-Cliffs CEO Lourenco Goncalves called Stelco’s ability to freely sell steel produced in Hamilton to U.S. buyers an “underlying condition” to terms it agreed to when it purchased Stelco in 2024. Those include maintaining “significant employment levels in Canada” and “significant operations in Hamilton.”
“We had [the] USMCA [United States-Mexico-Canada Agreement] in place . . . we had the ability to sell into the United States,” Goncalves said. “That was an underlying condition for me to acquire Stelco.
“I would not have acquired the Stelco if I knew that Canada and the United States would become what they became — enemies in trade.”
WATCH | Carney says Canada will do all it can to ensure Stelco meets obligations:
Stelco ‘betrayed’ Ontario workers with layoffs, Carney says
Prime Minister Mark Carney says Canada will ‘use all the powers that we have’ to ensure that Stelco meets its ‘legal obligations for employment.’ The company, which is owned by U.S.-based Cleveland-Cliffs, announced plans on Monday to idle some production at its Hamilton plant, putting hundreds of workers out of a job.Layoffs linked to trade war
Stelco, owned by Ohio-based Cleveland-Cliffs, directly linked its plan to cut up to 500 jobs with U.S. President Donald Trump’s trade war with Canada.
The Trump administration imposed 50 per cent tariffs on foreign steel under Section 232 of the Trade Expansion Act last year. Canada has retaliated with duties on many U.S.-made steel products.
Speaking to reporters on Tuesday, Carney singled out Goncalves for “applauding” Trump’s move to impose punishing tariffs on Canadian steel imports to the United States.
Goncalves said on Wednesday that his support for Trump was not at odds with his support for steel workers in Canada. He also said he had not received notice of a lawsuit from Canada’s federal government.
“America first is not America only,” he said. “Canadians need to understand that people like me that invest money in Canada are not going there to screw them up. We are there because we believe in the country. We believe in the people. We believe in the workforce.”
Cleveland-Cliffs acquired Hamilton-based Stelco in a $3.4-billion cash-and-stock deal that closed in November 2024. In a news release announcing the deal, Stelco’s then-CEO Alan Kestenbaum stated the transaction “keeps national interests at the forefront and recognizes the importance of the workforce.”
The Stelco Hamilton Works production facility is seen in an aerial view. Stelco Holdings Inc. said on Monday that it plans to idle part of its Hamilton plant. (Patrick Morrell/CBC)CEO defends move
Carney said he was “very disappointed” by Stelco’s decision to lay off workers as it temporarily halts cold-rolled steel production in Hamilton.
Goncalves defended the move, stating foreign steel imports to Canada have put pressure on Stelco by tightening the domestic market.
“We do not have a market that could accommodate all the participants in the marketplace, mainly the two big ones, Stelco and ArcelorMittal Dofasco, together with a number of tonnes of imported steel coming through the borders, and sell that altogether in the Canadian domestic market.
“So we have decided to go ahead and concentrate on hot-rolled products.”
When pressed on whether Stelco was turning away orders, the CEO responded that there were no orders: “We can’t turn down something that does not exist.”
A source inside Stelco told CBC News the company has customers wanting to place orders. Another industry insider said Canada’s steel industry at large continues to get orders of flat-rolled galvanized steel. CBC News is not naming these sources due concerns related to their respective employers.
The prime minister said on Tuesday that there is “money on the table from the federal government” to help companies like Stelco blunt the impact of the ongoing trade war.
Goncalves said the financial lifeline offered by Ottawa was not what his company needed.
“The problem is not lack of money. It’s not like Stelco is running out of cash,” he said, noting the core issue is the lack of a firm Canada-U.S. trade deal.
“There’s no money that could resolve that.”