Prime Minister Mark Carney has pledged to utilize all available government powers in response to the recent announcement of mass layoffs by an Ontario steel plant owned by a U.S. company. Stelco, a subsidiary of Cleveland-Cliffs based in Ohio, attributed its decision to cut up to 500 jobs in Hamilton to the trade tensions between the U.S. and Canada initiated by President Donald Trump’s imposition of hefty tariffs on foreign steel last year.

Speaking at a press conference in Vancouver, Carney expressed solidarity with the affected workers and their families, condemning the actions of Stelco’s CEO, Lourenco Goncalves, for supporting the tariffs on Canadian steel imports. The Prime Minister emphasized that the government will take all necessary measures within the bounds of the law to address the situation.

Cleveland-Cliffs acquired Stelco in a $3.4 billion cash and stock deal in November 2024. Carney expressed disappointment over the company’s layoffs decision, highlighting the importance of honoring commitments to employees. He also mentioned that the federal government is prepared to provide financial assistance to companies like Stelco to mitigate the impact of the ongoing trade dispute.

In response to the layoffs, Stelco’s vice-president of sales, Frederic Fafard, described the actions as unfortunate but essential for the company’s sustainability in a challenging market environment. Despite the plant closures in Hamilton, Cleveland-Cliffs anticipates relocating a significant number of employees to its operations in Nanticoke, Ontario.

Regarding potential legal actions against the company, Cleveland-Cliffs did not provide a comment following Carney’s statements. However, a company representative confirmed that discussions had taken place with Industry Minister Mélanie Joly regarding financial support for Stelco.

The situation continues to evolve, with stakeholders closely monitoring developments and seeking solutions to support affected workers and address the broader implications of the trade dispute.