The CEO of Stelco’s American parent company has stated that they will defend themselves in case Ottawa takes legal action following the decision to halt production at a steel mill in Hamilton, leading to around 500 job cuts, partly due to the ongoing trade tensions between Canada and the U.S.
This statement comes after Prime Minister Mark Carney mentioned that the Canadian government will use all available resources against Cleveland-Cliffs as they pursue legal actions against the Ohio-based company.
In an interview with CBC News, Cleveland-Cliffs CEO Lourenco Goncalves emphasized that Stelco’s ability to freely sell steel produced in Hamilton to U.S. buyers was a crucial aspect of the terms agreed upon during the company’s acquisition in 2024, which included maintaining substantial employment levels and operations in Hamilton.
Goncalves highlighted that the Canada-U.S.-Mexico Agreement (CUSMA) was in effect at the time of the acquisition, emphasizing the importance of being able to sell into the United States for him to acquire Stelco.
Despite the ongoing trade dispute, CUSMA remains operational until 2036, even though talks for its renewal were halted by the U.S. in July.
Goncalves mentioned in a subsequent interview that he believes he is acting responsibly as a business owner and is prepared to address any legal challenges presented by Carney in court.
The decision to cut up to 500 jobs at Stelco was directly attributed to the trade conflict between President Donald Trump’s administration and Canada, with tariffs imposed on foreign steel imports affecting the market. Carney criticized Goncalves for supporting Trump’s tariffs on Canadian steel, but Goncalves defended his stance, emphasizing his commitment to Canadian steelworkers.
Cleveland-Cliffs acquired Stelco in a multi-billion-dollar deal in 2024, with a focus on upholding national interests and valuing the workforce. Goncalves explained that market pressures, particularly from foreign steel imports, led to the concentration of production on hot-rolled products due to the challenging market conditions.
Regarding the availability of orders, Goncalves clarified that Stelco was not turning down orders but rather facing a lack of viable orders at sustainable price levels. While Carney offered financial assistance to mitigate the impact of the trade war, Goncalves emphasized that the core issue lies in the uncertainty of Canada-U.S. trade relations, indicating that financial aid alone cannot address the underlying challenges faced by Stelco.