Canada Threatens Legal Action Against Cleveland-Cliffs Over Stelco Layoffs in Hamilton
Prime Minister Mark Carney announced the federal government will pursue legal action against Cleveland-Cliffs, the U.S. owner of Stelco, after the company planned up to 500 job cuts in Hamilton linked to U.S. steel tariffs.
Prime Minister Mark Carney stated that the Canadian federal government will use all powers available to pursue the "fullest extent of the law" against Cleveland-Cliffs, the Ohio-based owner of Stelco, following the announcement of up to 500 job cuts at the company's plant in Hamilton, Ontario. 
Stelco directly linked its layoff plans to 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, prompting Canada to retaliate with duties on many U.S.-made steel products.
Carney singled out Cleveland-Cliffs CEO Lourenco Goncalves for applauding Trump's move to impose tariffs on Canadian steel imports, while noting that the company had made representations regarding employment obligations. Industry Minister Mélanie Joly was also in touch with Goncalves about financial support.
Cleveland-Cliffs acquired Hamilton-based Stelco in a $3.4-billion Cdn cash-and-stock deal that closed in November 2024. In the acquisition news release, Stelco's then-CEO Alan Kestenbaum stated the transaction kept national interests at the forefront and recognized the importance of the workforce.
Stelco vice-president of sales Frederic Fafard described the layoffs as an unfortunate but necessary action to ensure survival in a challenging market. 
Pat Persico, Cleveland-Cliffs' senior director of corporate communications, said a significant number of workers are expected to be absorbed by the company's Lake Erie Works in Nanticoke, Ont.