Stelco’s American parent company CEO stated they will defend against any potential legal action by Ottawa following the decision to shut down steel production in Hamilton, resulting in up to 500 job losses amid the ongoing trade tensions between Canada and the U.S.
This response comes after Prime Minister Mark Carney vowed to utilize all available legal options against Cleveland-Cliffs, the Ohio-based company, to the fullest extent of the law.
According to Cleveland-Cliffs CEO Lourenco Goncalves, the ability for Stelco to freely sell steel from Hamilton to U.S. buyers was a key condition agreed upon during the company’s acquisition in 2024, which included maintaining significant employment levels and operations in Hamilton.
Goncalves emphasized that the Canada-U.S.-Mexico Agreement (CUSMA) was already in effect at the time of the acquisition, allowing for steel sales into the U.S. market as a crucial factor in the deal.
Despite the trade tensions, CUSMA remains valid until 2036, even though talks for renewal were halted by the U.S. in July.
Facing the repercussions of the trade war, Stelco attributed its decision to lay off workers to the impact of the tariffs imposed by the Trump administration on foreign steel and Canada’s retaliatory duties on U.S.-made steel products.
Goncalves defended his support for Trump’s trade policies, emphasizing that investments in Canada are made to support the country and its workforce.
The company’s focus on hot-rolled steel products was explained as a strategic move due to market pressures from foreign steel imports affecting the demand for Stelco’s cold-rolled steel.
Goncalves clarified that the issue lies in the lack of sufficient orders at viable price levels rather than a shortage of funds, highlighting the uncertainty in Canada-U.S. trade relations as the core challenge.
Carney’s offer of financial assistance was noted by Goncalves, who maintained that the real issue lies in the trade uncertainty rather than financial constraints.