U.S. Steel Tariffs Expected to Persist as Cleveland-Cliffs Layoffs Spark Political Clash in Canada
A Canadian steel industry official warned that U.S. tariffs may remain long term, while roughly 350 layoffs at a Hamilton Stelco plant triggered a dispute between Prime Minister Mark Carney and Cleveland-Cliffs CEO Lourenco Goncalves over market conditions and labor commitments.
John Cuddihy, vice president of the Canadian Steel Producers Association, told the Senate’s foreign affairs committee on Thursday that U.S. steel tariffs could be in play for the long term. His testimony coincided with growing calls for strengthened Buy Canadian rules to support the domestic steel industry amid ongoing trade pressures.
The warning came as Cleveland-Cliffs moved forward with a decision to lay off roughly 350 employees at the Stelco plant in Hamilton. The announcement drew sharp criticism from Canadian government officials and ignited a public dispute over the reasons behind the job cuts.
Prime Minister Mark Carney accused Cleveland-Cliffs of betraying Canadian workers and suggested that federal funds were available to help keep employees working. Industry Minister Mélanie Joly sent a letter to Stelco president Paul Simon expressing extreme disappointment in the layoff plans. Joly noted that the 2024 Cleveland-Cliffs takeover of Stelco was conditional on maintaining the number of unionized and non-unionized employees.
Cleveland-Cliffs CEO Lourenco Goncalves pushed back against the political response, stating that no amount of money would have changed the factors leading to the layoffs due to a lack of a domestic market for galvanized steel. Goncalves also denied that his support for Donald Trump or donations played a factor in the layoff decision.
The conflicting statements have heightened political tension between Canadian government officials and U.S. corporate leadership regarding trade policies and labor commitments, leaving hundreds of workers in Hamilton facing uncertainty.