Trudeau Accuses Cleveland-Cliffs Of Betraying Canadian Workers After Stelco Layoffs Linked To U.S. Tariffs

Canadian Prime Minister Justin Trudeau sharply criticized Cleveland-Cliffs, the U.S. owner of steelmaker Stelco, after the company announced layoffs it partly blamed on U.S. tariffs imposed by President Donald Trump. The move could affect up to 500 workers and has prompted Ottawa to warn of legal action over binding employment commitments tied to the 2024 takeover.

Canada Prime Minister Mark Carney laughs when asked if Canada will apologize to the U.S. for the sake of a trade deal, during an announcement about funding for oceans protection, in North Vancouver, British Columbia, Canada, Tuesday, Sept. 29, 2026. (Darryl Dyck/The Canadian Press via AP)(Darryl Dyck/The Canadian Press via AP)

What Stelco says
Stelco said it will indefinitely idle cold-rolled and coated operations at its Hamilton, Ontario, plant and shift production to its Lake Erie Works in Nanticoke, Ontario. The company said overall steel tonnage will remain unchanged and that many affected Hamilton employees may be absorbed at Nanticoke.

Canada Prime Minister Mark Carney applauds while sitting with Minister of Energy and Natural Resources Tim Hodgson before speaking after LNG Canada said it will go ahead with the Phase 2 expansion project at its LNG terminal in Kitimat, British Columbia, Canada, during an announcement in Vancouver, on Tuesday, Sept. 29, 2026. (Darryl Dyck/The Canadian Press via AP)(Darryl Dyck/The Canadian Press via AP)

Company's explanation
In a memo to staff, Stelco attributed the decision in part to U.S. tariffs, saying the measures had "significantly shrunk the market" for its cold-rolled and galvanized products. The company reported demand in its traditional markets fell nearly 25% in the second quarter compared with the 2024 quarterly average, including about a 10% decline in Canada.

Canadian Prime Minister Mark Carney speaks after LNG Canada said it will go ahead with the Phase 2 expansion project at its LNG terminal in Kitimat, British Columbia, during an announcement in Vancouver, Tuesday, Sept. 29, 2026. (Darryl Dyck/The Canadian Press via AP)(Darryl Dyck/The Canadian Press via AP)

Government response
Prime Minister Trudeau accused Cleveland-Cliffs of betraying Canadian workers and singled out CEO Lourenco Goncalves, noting Goncalves had publicly praised President Trump’s 50% steel tariffs as "a necessary step" to protect U.S. producers. The federal government said it has offered financial assistance to try to preserve jobs but declined to disclose details, and warned it will enforce the legally binding employment conditions attached to the takeover.

Legal obligations
When Ottawa approved Cleveland-Cliffs’ C$3.4 billion acquisition of Stelco in October 2024, it imposed five-year employment commitments, including maintaining at least the same number of unionized positions and preserving the vast majority of nonunion roles. Trudeau said the government intends to use all powers available to enforce those commitments.

Wider context
The layoffs come amid escalating Canada-U.S. trade tensions after the U.S. imposed 50% tariffs on Canadian steel and other imports and Canada responded with retaliatory measures. At a White House event announcing a new $15 billion steel plant in Iowa, President Trump credited tariffs with reducing foreign steel imports and attracting new investment to the U.S.

Next steps
Ottawa is reviewing enforcement and support options while engaging with unions and the company. Cleveland-Cliffs did not immediately respond to requests for comment on the government’s remarks.