Cleveland-Cliffs’ CEO defends the decision to halt production at a steel mill in Hamilton, Ontario, causing potential layoffs. The move is attributed, in part, to the strained trade relations between Canada and the U.S.
Following Prime Minister Mark Carney’s vow to utilize all available legal measures against Cleveland-Cliffs, CEO Lourenco Goncalves emphasized that the ability to sell steel from Hamilton to U.S. buyers was a critical condition when acquiring Stelco. Goncalves expressed regret over the deteriorating trade relationship between the two countries.
The decision to cut up to 500 jobs at Stelco, a subsidiary of Cleveland-Cliffs, is directly linked to President Trump’s trade war with Canada. Tariffs imposed by the Trump administration on foreign steel, and Canada’s retaliatory measures, have exacerbated the situation.
Carney criticized Goncalves for supporting Trump’s tariffs on Canadian steel imports, while Goncalves defended his stance, stating that his investments in Canada reflect a belief in the country and its workforce.
Cleveland-Cliffs acquired Stelco in a multi-billion-dollar deal, emphasizing the importance of the Canadian workforce. While Carney expressed disappointment in the layoffs, Goncalves justified the decision, citing pressure from foreign steel imports as a factor.
Despite potential customer orders, Goncalves asserted that the market conditions required a shift in focus to hot-rolled products. He also noted that financial assistance from the federal government was not the solution, highlighting the necessity of a stable Canada-U.S. trade agreement.