US Steelmaker accused of betraying Canadian workers following layoffs linked to Trump tariffs.
Toronto – Prime Minister Mark Carney of Canada has voiced strong criticism against the U.S.-based steel producer Cleveland-Cliffs following announcements of impending layoffs at its subsidiary, Stelco. The layoffs, affecting as many as 500 workers, will primarily result from the indefinite idling of cold-rolled and coated operations at their facility in Hamilton, Ontario. This decision comes as Cleveland-Cliffs prepares to shift production to its Lake Erie facility in Nanticoke, an action that has drawn ire from government officials and labor advocates.
During a press conference, Carney attributed the layoffs, in part, to the tariffs imposed by U.S. President Donald Trump, which have become a contentious point in U.S.-Canada trade relations. The tariffs, set at 50%, have been supported openly by Cleveland-Cliffs CEO Lourenco Goncalves, who has previously characterized them as “a necessary step” for the protection of American steelmakers. Carney expressed disappointment, stating that the company has betrayed its Canadian workforce, emphasizing his intent to be candid regarding the toll the layoffs would take on local families and communities.
The company itself has cited diminishing market demand for cold-rolled and galvanized products, claiming a nearly 25% drop in sales for the second quarter compared to 2024 averages. This downturn includes a significant 10% decline in the Canadian market specifically. In light of these developments, Carney has indicated that the Canadian government is prepared to pursue legal action against Cleveland-Cliffs, pointing to prior commitments made during their C.4 billion (approximately .4 billion) acquisition of Stelco in late 2024. The government had granted the takeover with the stipulation that Cleveland-Cliffs maintain certain employment levels as part of their obligations.
Despite acknowledging the federal government’s readiness to provide financial assistance aimed at preserving jobs, Carney did not specify the potential aid amount or its conditions. He reiterated the importance of protecting the interests of workers, noting that the company has both legal and moral responsibilities towards its employees.
As tensions in U.S.-Canada trade relations continue to escalate, further ramifications from the ongoing trade war can be anticipated. In recent events, Trump has highlighted that these tariffs may be incentivizing manufacturing investment within American borders. Opposition to the measures, particularly from Canadian officials, indicates a growing discord amidst escalating economic pressures on both sides of the border.
Cleveland-Cliffs has yet to respond to the government’s statements regarding the layoffs and their implications. The situation remains fluid, with ongoing discussions expected around employment obligations and the broader impacts on the steel industry in both nations.
