The CEO of the American parent company of Stelco defends the decision to halt production at a steel mill in Hamilton, leading to around 500 job cuts, citing the ongoing trade tensions between Canada and the U.S. Prime Minister Mark Carney vows to take legal action against Cleveland-Cliffs, the owner of Stelco, to the fullest extent possible.
In an interview, Cleveland-Cliffs CEO Lourenco Goncalves explains that the agreement to freely sell steel produced in Hamilton to U.S. buyers was a crucial condition when acquiring Stelco. This condition was established under the Canada-U.S.-Mexico Agreement (CUSMA), which was in effect at the time of the acquisition.
Despite the trade war, CUSMA remains in place until 2036. Goncalves asserts that his actions align with responsible business practices and expresses readiness to address Carney’s lawsuit in court.
The decision to cut up to 500 jobs at Stelco is directly linked to the trade dispute initiated by U.S. President Donald Trump, who imposed tariffs on foreign steel imports, prompting retaliatory measures from Canada. Carney criticizes Goncalves for supporting Trump’s tariffs, but Goncalves maintains that his allegiance to the U.S. president does not conflict with his support for Canadian steelworkers.
Goncalves highlights that foreign steel imports to Canada have affected the market for Stelco’s cold-rolled steel production, leading the company to focus on hot-rolled products due to market pressures. While some sources claim there are customers seeking orders from Stelco, Goncalves clarifies that the issue lies in the lack of viable orders at sustainable price levels rather than a shortage of funds.
Carney offers financial support to mitigate the trade war’s impact, but Goncalves emphasizes that the root challenge lies in the uncertainty surrounding Canada-U.S. trade relations, stating that financial aid alone cannot resolve the underlying issues.