Cleveland-Cliffs' Stelco to lay off hundreds in Hamilton as Carney accuses U.S. owner of betraying Canadian workers

Canadian Prime Minister Mark Carney accused Ohio-based Cleveland-Cliffs Inc. of betraying workers after its subsidiary, Stelco Holdings Inc., announced plans to indefinitely idle cold-rolled and coated operations in Hamilton, Ontario, affecting up to 500 employees. Stelco blamed the layoffs on a trade war and 50 percent U.S. steel tariffs. Carney threatened legal action, citing binding employment commitments from Cleveland-Cliffs' 2024 acquisition of Stelco.

Shutdown and layoffs at Hamilton Works

• ▪Stelco Holdings Inc. announced plans on September 28, 2026, to indefinitely idle its cold-rolled and coated operations at its Hamilton Works plant in Ontario, beginning wind-down operations on October 9, 2026, affecting up to 500 employees.
• ▪United Steelworkers Local 1005 president Ron Wells estimated that approximately 350 steelworkers will be laid off at the Hamilton Works plant due to Stelco's operational shutdown there
• ▪Cleveland-Cliffs Inc. spokesperson Patricia Persico stated that the company will concentrate steel production at its Lake Erie Works in Nanticoke, Ontario, and offer job opportunities there to affected Hamilton employees.

Dispute over acquisition commitments

• ▪Cleveland-Cliffs Inc. acquired Stelco Holdings Inc. in November 2024 for $3.4 billion under binding conditions that required Cleveland-Cliffs to maintain the same number of unionized employees for five years
• ▪Canadian Prime Minister Mark Carney accused Cleveland-Cliffs Inc. of betraying Canadian workers and announced that his government will pursue legal options to enforce binding employment commitments from the 2024 acquisition of Stelco

Backlash over CEO's support for tariffs

• ▪Cleveland-Cliffs Inc. Chairman and CEO Lourenco Goncalves has publicly supported and applauded U.S. President Donald Trump's 50 percent steel tariffs, calling them a necessary step to protect American steelmakers.
• ▪United Steelworkers Local 1005 president Ron Wells and Canadian Prime Minister Mark Carney criticized Cleveland-Cliffs Inc. CEO Lourenco Goncalves for supporting the very U.S. tariffs that eroded Stelco's business.

Federal government response

• ▪Cleveland-Cliffs Inc. spokesperson Patricia Persico confirmed on September 28, 2026, that Canadian Industry Minister Mélanie Joly has been in contact with Cleveland-Cliffs CEO Lourenco Goncalves.
• ▪Canadian Industry Minister Mélanie Joly stated that the federal government had offered financial support to Stelco Holdings Inc. to sustain operations and protect jobs, which the company rejected.

Impact of tariffs on Canadian steel sector

• ▪Canadian Manufacturers and Exporters chief economist Alan Arcand stated that Canadian steel-using manufacturers are losing U.S. sales and cutting production, which reduces domestic demand for Canadian steel.
• ▪Industry experts state that U.S. tariffs are causing a domino effect in Canada's manufacturing supply chain, leading to job cuts at Algoma Steel and the closure of ArcelorMittal's Hamilton wire-drawing mill.
• ▪Stelco Holdings Inc. attributed the shutdown of its Hamilton cold-rolled and coated operations to ongoing trade disruptions and U.S. tariffs, which significantly contracted the market for its cold-rolled and galvanized products.

U.S. tariffs and Canadian retaliation

• ▪U.S. President Donald Trump signed an executive order in June 2025 imposing 50 percent tariffs on Canadian steel and aluminum imports under Section 232 of the Trade Expansion Act.
• ▪The United States began collecting 50 percent duties on approximately $28 billion of Canadian goods on August 22, 2026, and Canada retaliated with matching dollar-for-dollar tariffs on September 8, 2026.

Debatable claims

• ▪Cleveland-Cliffs' layoffs at Stelco are justified by the impact of U.S. tariffs
• ▪Cleveland-Cliffs bears responsibility for the Stelco layoffs due to its CEO's support of U.S. tariffs
• ▪Cleveland-Cliffs' offer to transfer Hamilton workers to Lake Erie Works adequately fulfills its employment commitments
• ▪Stelco was justified in rejecting Canadian federal aid to sustain its Hamilton operations