Another blow to Canada’s steel manufacturing sector, as Stelco will lay off as many as 500 workers at its Hamilton, Ont., steel plant.
Political leaders in Ontario and Ottawa say they’re angry with the American-owned steel manufacturer.
Some are asking whether the parent company, Cleveland-Cliffs, is breaking a deal made when it acquired Stelco in 2024.
That deal was partly contingent on Cleveland-Cliffs maintaining the same number of unionized jobs at Stelco until 2029.
It has said it will offer jobs to some Hamilton employees at the Lake Erie Works but a significant number of employees will be laid off indefinitely.
Prime Minister Mark Carney is calling the Stelco decision a betrayal.
"There’s money on the table from the federal government, number one," he said. "And the company made representations and has legal obligations for employment. We intend to use all powers that we have and pursue them to the full extent of the law, and I would just take note that this situation is caused by the U.S. tariffs. And that the ultimate owner of Stelco, Cleveland-Cliffs, applauded President Trump for putting those tariffs on."
However, it’s been noted that Stelco did not apply for any federal support money. The company said it’s an unfortunate but necessary action to help ensure the survival of Stelco. It also blames Canada for continuing to allow the imports of steel from abroad.
Hamilton Mayor Andrea Horvath also weighed in, saying the decision will cause unnecessary pain to the community.
"We also have a lot of manufacturing that is associated with steel, and I can tell you that other steelmakers are responding in a different way, let’s say, than this particular employer," Horvath said. "And so if others are prepared to have conversations and discussions about saving jobs, saving workers, and saving industry in Hamilton, this one’s an outlier."
Horvath also blames Trump for the layoffs.
"This particular company has been very clear that they support — the president of this company very clear — that they support Donald Trump and his tariffs and his desire to pull all steelmaking back into the United States," she said.
The Carney government has embarked on a plan for huge nation-building projects with aim of using Canadian steel in the construction.
McMaster economics professor Colin Mang said it can’t come quickly enough for the steel sector in Canada.
"Because of the decline in the auto industry, in the challenges in the construction industry over the past year and a half, there just isn’t enough domestic demand to absorb their excess product that they can’t sell to the United States," Mang said.
The United Steelworkers union also says the big projects are too far in the future. And Steelworkers President Marty Warren said the future does look brighter because of those projects. But in the short term, there must be action taken against the U.S.
"They’re suggesting they’re protecting their steel industry, and we need to do the same," Warren said. "It is interesting, though, that all the steel that we send to the U.S. is about 5% to 6% of their consumption. So the real question: Is Canada really the problem? I don’t think so."
Trump slapped 50% tariffs on Canada’s steel and aluminum sector last year. He’s threatened another 50% in January of 2027 in retaliation to Ottawa fighting back with counter measures.
