The CEO of Stelco’s American parent company asserts his full legal authority to halt production at a steel mill in Hamilton, Ontario, resulting in potential layoffs of up to 500 employees, partly due to the ongoing trade conflict between Canada and the U.S. This statement comes in response to Prime Minister Mark Carney’s declaration that the Canadian government will utilize all available measures against Cleveland-Cliffs, urging the company to comply with the law.
In a recent interview with CBC News, Cleveland-Cliffs CEO Lourenco Goncalves emphasized that the freedom to sell steel produced in Hamilton to U.S. buyers was a fundamental condition agreed upon when acquiring Stelco. This condition included maintaining substantial employment levels in Canada and significant operations in Hamilton. Goncalves highlighted that the ability to export to the U.S. was a critical factor in the acquisition decision.
Goncalves expressed regret over the trade tensions that have arisen between Canada and the U.S., stating that he would not have pursued the Stelco acquisition had he foreseen the current state of trade relations between the two countries.
The decision to lay off up to 500 employees at Stelco, under the ownership of Cleveland-Cliffs, was directly attributed to the trade dispute initiated by U.S. President Donald Trump, who imposed significant tariffs on foreign steel imports, to which Canada responded with tariffs on American steel products.
Prime Minister Carney criticized Goncalves for supporting Trump’s tariff measures against Canadian steel imports. Goncalves defended his stance, emphasizing that his investment in Canada was made in good faith and not intended to harm the workforce. He clarified that he had not received any legal notice from the Canadian government regarding the situation.
Cleveland-Cliffs acquired Stelco in a multi-billion-dollar deal, underlining the importance of national interests and workforce considerations. Carney expressed disappointment over the layoffs, while Goncalves justified the decision, citing market pressures from foreign steel imports as a primary factor.
Despite the availability of federal financial assistance to mitigate the impact of the trade dispute, Goncalves insisted that the core issue lies in the absence of a comprehensive trade agreement between Canada and the U.S., rather than a lack of funding.