The CEO of Stelco’s parent company in the U.S. has defended the decision to halt production at a steel mill in Hamilton, Ontario, leading to the potential layoff of 500 workers, citing the ongoing trade dispute between Canada and the U.S.
This statement comes in response to Prime Minister Mark Carney’s pledge to take legal action against Cleveland-Cliffs for not meeting its obligations. In an interview, Cleveland-Cliffs’ CEO, Lourenco Goncalves, emphasized that the ability to sell steel from Hamilton to U.S. buyers was a key condition of the acquisition deal in 2024, which included maintaining employment levels and operations in Canada.
Goncalves expressed regret over the trade tensions between the two countries, highlighting that the situation was different when the agreement was made. Stelco attributed the layoffs to President Trump’s trade policies, which imposed tariffs on foreign steel, prompting retaliatory duties from Canada.
Carney criticized Goncalves for supporting Trump’s tariff measures. However, Goncalves clarified that his investment in Canada was not aimed at harming workers but rather stemmed from a belief in the country and its workforce.
Despite the layoffs, Goncalves explained that market pressures, including imported steel, led to the decision to focus on hot-rolled products. He refuted claims that Stelco was turning down orders, stating there were no existing orders to reject.
While the federal government offered financial assistance to mitigate the trade war’s impact, Goncalves noted that the core issue lay in the absence of a concrete trade agreement between Canada and the U.S. He emphasized that financial aid was not the solution to the challenges faced by Stelco amid the ongoing trade uncertainties.