Carney accuses US steelmaker of betraying Canadian workers after layoffs
tied to Trump tariffs
[September 30, 2026]
By ROB GILLIES
TORONTO (AP) — Canadian Prime Minister Mark Carney accused the U.S.
owner of steelmaker Stelco, a subsidiary of Cleveland-Cliffs, of
betraying Canadian workers Tuesday after it announced layoffs it
attributed in part to U.S. President Donald Trump’s tariffs — tariffs
Cleveland-Cliffs’ chief executive has publicly championed.
Carney singled out Cleveland-Cliffs CEO Lourenco Goncalves, noting that
he had applauded Trump’s steel tariffs. Goncalves has called the 50%
tariffs “a necessary step” to protect U.S. steelmakers.
“Our thoughts are with the workers and the families who have been
betrayed by the company,” Carney said.
Carney also threatened legal action against Cleveland-Cliffs, saying the
Ohio-based company has binding employment obligations stemming from its
C$3.4 billion ($2.4 billion) takeover of Stelco in 2024.
Stelco said up to 500 workers could be affected as it indefinitely idles
cold-rolled and coated operations at its Hamilton, Ontario, plant and
shifts production to its Lake Erie facility in Nanticoke, Ontario.
Cleveland-Cliffs said Monday the move does not shift steel production
out of Canada: Output will be concentrated at Stelco’s Lake Erie Works
in Nanticoke, Ontario, where it expects a significant number of affected
Hamilton workers to be absorbed, with overall steel tonnage unchanged.
In a memo to employees, Stelco said U.S. tariffs had “significantly
shrunk the market” for its cold-rolled and galvanized products. The
company said demand in markets it traditionally serves fell almost 25%
in the second quarter compared to the 2024 quarterly average, including
a 10% decline in Canada.
[to top of second column] |
Canadian Prime Minister Mark Carney listens during an announcement
about funding for oceans protection, in North Vancouver, British
Columbia, Tuesday, Sept. 29, 2026. (Darryl Dyck/The Canadian Press
via AP)
 The layoffs come amid an escalating
Canada-U.S. trade war in which Trump has imposed 50% tariffs on
Canadian steel and other goods and Canada has retaliated with
tariffs of its own. At a White House event Monday announcing a new
$15 billion steel plant in Iowa, Trump credited his tariffs with
reducing foreign steel imports and attracting investment to the
United States, saying companies were building plants there “because
they don’t want to pay tariffs.”
Carney said the federal government had offered financial assistance
to preserve jobs but did not disclose the amount or terms.
“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.”
The Canadian government approved Cleveland-Cliffs’ takeover of
Stelco in October 2024 on the condition that it meet legally binding
five-year employment commitments, including maintaining at least the
same number of unionized workers and the vast majority of nonunion
employees.
Cleveland-Cliffs did not immediately respond to a request for
comment on Carney’s remarks.
All contents © copyright 2026 Associated Press. All rights reserved |
