Carney threatens legal action against US steelmaker over tariff-linked layoffs

Canada’s Prime Minister Mark Carney has accused US steelmaker Cleveland-Cliffs of betraying Canadian workers after its Stelco subsidiary announced layoffs affecting up to 500 employees in Ontario.

Stelco plans to indefinitely idle cold-rolled and coated operations at its Hamilton plant and concentrate production at its Lake Erie facility in Nanticoke.

The company said US tariffs had “significantly shrunk the market” for some of its products.

The layoffs come as US President Donald Trump maintains 50 percent tariffs on Canadian steel.

Cleveland-Cliffs CEO Lourenco Goncalves has previously called the tariffs “a necessary step” to protect American steelmakers.

“Our thoughts are with the workers and the families who have been betrayed by the company,” Carney said Tuesday, according to the Associated Press.

Carney also threatened legal action, saying Cleveland-Cliffs has binding employment obligations linked to its C$3.4-billion takeover of Stelco in 2024.

“There’s money on the table from the federal government,” Carney said.

“The company made representations and has legal obligations for employment. We intend to use all powers that we have and pursue them to the fullest extent of the law.”

Cleveland-Cliffs said overall Canadian steel production would remain unchanged and that it expects many affected Hamilton workers to be absorbed at the Nanticoke facility.