Planned Stelco Lay-offs Spark Tensions Between Canada and US Steelmaker

Toronto, Canada (ANTARA) – The Canadian government warned on Friday (16 October) that US steelmaker Cleveland-Cliffs could be forced to sell its Canadian assets after the company announced plans to lay off more than 500 workers at Stelco.

Canada’s Industry Minister, Melanie Joly, said the company must honour the employment commitments it made when it acquired the Ontario-based steelmaker in 2024.

“They must maintain jobs in Canada or face the possibility of having to sell their assets in Canada,” Joly said in a speech at the Canadian Club in Toronto.

Her remarks followed an earlier warning that the Canadian government could take legal action over the planned lay-offs.

“We hired the best lawyers in town over the weekend,” Joly told reporters after her speech.

The Canadian government says Cleveland-Cliffs committed to preserving jobs at steelmaker Stelco as a condition of approval for the acquisition under the Investment Canada Act in 2024.

US tariffs blamed

Cleveland-Cliffs chief executive Lourenco Goncalves criticised the Canadian government’s response in an interview with BNN Bloomberg on Thursday.

Goncalves accused the Canadian government of using “intimidation and harassment” tactics against his company.

He said the planned lay-offs would be temporary and were necessary because of tariffs imposed on Canada by US President Donald Trump’s administration.

Joly defended the government’s position, saying Ottawa was seeking to protect Canadian workers and ensure foreign investors honoured their commitments.

“We want to send a message to foreign companies that we are certainly open for business. But if you come and invest in our country, you must honour your commitments,” she said.