Carney Criticizes Cleveland-Cliffs Over Stelco Layoffs

Canadian Prime Minister Mark Carney criticized Cleveland-Cliffs, the US owner of Stelco, after the Canadian steelmaker announced plans that could affect up to 500 workers at its Hamilton, Ontario, operations.

Stelco plans to idle some operations in Hamilton, Ontario, affecting up to 500 workers as the company deals with weaker demand and trade-related pressures. [Photo: Stelco]

Carney criticized Cleveland-Cliffs CEO Lourenco Goncalves, noting his previous support for US steel tariffs.

Carney said the Canadian government was concerned about the workers and indicated it could pursue legal action based on employment commitments associated with Cleveland-Cliffs' C$3.4 billion acquisition of Stelco in 2024.

Stelco plans to indefinitely idle its cold-rolled and coated operations in Hamilton and concentrate production at its Lake Erie Works facility in Nanticoke, Ontario. The company said the move does not shift steel production out of Canada.

A significant number of affected Hamilton employees are expected to be offered opportunities at the Nanticoke facility.

Stelco said US tariffs had significantly reduced the market for its cold-rolled and galvanized steel products.

The company reported that demand in its traditional markets fell by almost 25% in the second quarter compared with the 2024 quarterly average, including a 10% decline in Canada.

Cleveland-Cliffs said overall steel tonnage would remain unchanged because production would be concentrated at Lake Erie Works.