Carney Slams Stelco Layoffs as "Betrayal" of Canadian Workers, Threatens Legal Action Against US Parent

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Stelco, the Canadian steelmaker owned by US-based Cleveland-Cliffs, announced on September 29 it will indefinitely idle the cold-rolling and coating lines at its Hamilton, Ontario plant, consolidating production at its Lake Erie (Nanticoke) works — affecting up to 500 workers.

In an employee memo, Stelco said the US 50% steel and aluminum tariffs have "significantly shrunk" the market for cold-rolled and coated products; demand in its traditional service-center markets fell nearly 25% in the second quarter versus the 2024 quarterly average, including a 10% drop in Canada.

Prime Minister Mark Carney responded on September 29, calling the decision a "betrayal of Canadian workers." He pointed to parent-company CEO Lourenco Goncalves' public praise of Trump's 50% steel tariffs as "necessary to protect American steel companies," accusing him of a double standard.

Carney said Cleveland-Cliffs made binding employment commitments — to maintain union and non-union employment levels for five years — when it acquired Stelco in 2024 for C$3.4 billion (about US$2.4 billion), and that the government will use every legal means to enforce them.

Cleveland-Cliffs responded that production is not leaving Canada, total steel tonnage is unchanged, and the Lake Erie plant will absorb a substantial number of affected workers.

Carney declined to comment on Trump's demand that Canada "apologize," reiterating that Canada is willing to negotiate a mutually beneficial trade arrangement in good faith — provided the sovereignty of both countries is respected.