Canadian Prime Minister Mark Carney said that the Canadian subsidiary of Cleveland-Cliffs Inc. announcing the closure of some Ontario operations is a "betrayal" of workers, and pledged to hold the company accountable "to the fullest extent permitted by law." This subsidiary, named Stelco, said on Monday that it expects to indefinitely shut down the cold-rolled and coated operations at its Hamilton plant near Toronto, citing U.S. tariffs as one of the reasons. The shutdown will affect approximately 350 employees.
Carney told reporters in Vancouver on Tuesday that he was "very disappointed" by Stelco's decision, and noted that the federal government had previously provided financial support to the company. The Prime Minister emphasized that Stelco "has legal obligations regarding employment."
Cleveland-Cliffs Chief Executive Officer Lourenco Goncalves said on Tuesday that he will not shy away from a legal confrontation with Carney's government. In an interview, he said: "If they plan to do that — great. We'll see them in court."
The Trump administration imposed a 50% tariff on foreign steel last year under Section 232 of the Trade Expansion Act. In response, Canada also imposed tariffs on many U.S.-made steel products.
Carney specifically pointed out that it was Goncalves who previously "praised" U.S. President Donald Trump for implementing these tariffs, and these tariffs are precisely the reason Stelco is currently in trouble.
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