Stelco to Indefinitely Idle Hamilton Operations Citing U.S. Tariffs
Stelco Holdings Inc. announced it will indefinitely idle its cold-rolled and coated operations at the Hamilton Works plant, a move attributed to significant market contraction caused by U.S. tariffs of up to 50% on Canadian steel imports. The decision, which begins winding down on October 9, is expected to impact up to 500 employees, with union estimates suggesting around 350 layoffs.
Stelco Holdings Inc. has announced plans to indefinitely idle its cold-rolled and coated operations at its Hamilton Works plant. The company cited U.S. tariffs of up to 50% on Canadian steel imports as the primary cause for a significant contraction in its market for these products.
The wind-down process for these specific operations is scheduled to begin on Oct. 9. Stelco stated that the idling is necessary for the company's survival due to sustained trade disruptions and high import penetration. However, the company confirmed that this decision will not impact its ability to supply hot-rolled steel products, which will continue production unaffected.
The announcement highlights a conflict regarding the scale of job losses. While Stelco states the move will impact up to 500 employees, Ron Wells, president of United Steelworkers Local 1005, estimates that approximately 350 steelworkers will be laid off.
This development follows the acquisition of Hamilton-based Stelco by Ohio-based Cleveland-Cliffs in November 2024. The $3.4-billion Canadian cash-and-stock deal included commitments from Cleveland-Cliffs to maintain the same number of unionized employees. The current situation arises after U.S. President Donald Trump signed an executive order in June applying up to 50 per cent tariffs to certain steel and aluminum imports from Canada.