Industry Minister Melanie Joly has given Stelco 15 days to make good on its agreements with the Canadian government or face legal action.
Joly made the demand in a letter to Stelco’s general counsel on Thursday. In an accompanying statement on X, she wrote that Cleveland-Cliffs, the American company that acquired the steel producer in 2024, made legally binding commitments which were key to allowing the transaction to move forward.
“As we stand right now, the business is still taking steps to lay off 500 workers. Despite being given multiple opportunities, Cleveland-Cliffs has repeatedly failed to demonstrate that they are compliant with their undertakings. That is unacceptable.”
CTV News reached out to Cleveland-Cliffs, which opted not to comment.
Last month, Cleveland-Cliffs announced it would shut down part of its operation across the Hamilton and Lake Erie facilities, axing up to 500 jobs. At the time, the company cited low steel prices and tariffs imposed by U.S. President Donald Trump.
The letter contends that Cleveland-Cliffs submitted a number of formal “undertakings” submitted under the Investment Canada Act. Among those undertakings, it pledged to be a “strong advocate for policies that benefit both the U.S. and Canadian steel industries.”
Joly’s letter argues Cliffs’ chief executive officer, Lourenco Goncalves, has advocated in favour of U.S. tariffs affecting Canadian steel, and “publicly asserted that he influenced those tariffs.”
For example, she wrote, “On Jan. 14, 2026, Mr. Goncalves testified before the Congressional Steel Caucus of the United States Congress. In his prepared remarks, Mr. Goncalves expressly and repeatedly endorsed the imposition of Section 232 tariffs against Canada.
“He took credit for blocking Stelco from selling steel into the U.S. market. He stated that the increase in Section 232 tariffs to 50 per cent was ‘absolutely necessary.’ In his testimony, he called Canada a ‘bad player[s]’ and a ‘steel dumping machine’ and likened it to China and Brazil.”
Joly’s letter also claims Cliffs was the first signatory on an industry memo sent to Trump on Jan. 28 advocating for steel levies.
In October, Stelco requested relief from some of its commitments due to “unprecedented and escalating disruptions” facing the industry, according to Joly’s letter. The company requested relief from its commitments on employment to be reduced. Days later, a union president confirmed 90 members received layoff notices on Oct. 5, and that 85 members expected to receive notices by the end of the following week.
