TORONTO (AP) — canadian Prime Minister Mark Carney on Tuesday accused the American owner of steelmaker Stelco, a subsidiary of Cleveland-Cliffs, of betraying Canadian workers after announcing layoffs that he attributes in part to tariffs imposed by American President Donald Trump – tariffs that the CEO of Cleveland-Cliffs has publicly defended.
Carney pointed out Cleveland-Cliffs CEO Lourenco Goncalves, noting that he applauded Trump’s steel tariffs. Goncalves called the 50% tariffs a “necessary measure” to protect U.S. steelmakers.
“Our hearts go out to the workers and families who have been betrayed by the company,” Carney said.
Carney also threatened legal action against Cleveland–Cliffssaying the Ohio-based company has binding employment obligations stemming from its C$3.4 billion ($2.4 billion) takeover of Stelco in 2024.
Stelco said up to 500 workers could be affected by indefinitely shutting down its cold rolling and coating operations at its Hamilton, Ont., plant and shifting production to its Lake Erie plant in Nanticoke, Ont.
Cleveland-Cliffs said Monday the move would not move steel production out of Canada: Production will be concentrated at Stelco’s Lake Erie plant in Nanticoke, Ont., where a significant number of Hamilton workers are expected to be absorbed, with overall steel tonnage unchanged.
In a memo to employees, Stelco said U.S. tariffs have “significantly reduced the market” for its cold-rolled and galvanized products. The company said demand in the markets it traditionally serves fell nearly 25% in the second quarter compared to the 2024 quarterly average, including a 10% decline in Canada.
Layoffs come amid escalation Canada-United States trade war in which Trump imposed 50% tariffs on Canadian steel and other products and Canada retaliated with tariffs of its own. At a White House event Monday announcing a new $15 billion steel plant in IowaTrump credited his tariffs with reducing foreign steel imports and attracting investment to the United States, saying companies were building factories there “because they don’t want to pay tariffs.”
Carney said the federal government offered financial assistance to preserve jobs, but did not disclose the amount or conditions.
“There is money on the table from the federal government,” Carney said. “The company has made representations and has legal obligations regarding employment. We intend to use all powers available to us and exercise them to the fullest extent permitted by law.”
The Canadian government approved Cleveland-Cliffs’ takeover of Stelco in October 2024 on the condition that the company meets legally binding five-year employment commitments, including maintaining at least the same number of unionized workers and the vast majority of non-unionized employees.
Cleveland-Cliffs did not immediately respond to a request for comment on Carney’s remarks.
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