Muhammad Amanullah
Date: October 8, 2026 The True Post (Web News) —Canada’s Industry Minister Mélanie Joly has said Stelco Holdings Inc. cannot use the ongoing trade war between Canada and the United States to justify job cuts that the company promised the federal government it would avoid when purchasing the Hamilton steel plant.
Speaking to reporters on Wednesday, Joly said the head of US-based Cleveland-Cliffs had previously supported tariffs on American steel. She argued that the company therefore cannot now claim that a potential decision to lay off up to 500 workers is being driven by circumstances beyond its control.
Up to 500 Jobs at Risk
Stelco has cited US tariffs and market pressures as reasons for the proposed job cuts. Under the company’s plan, as many as 500 workers at its Hamilton steel plant could lose their jobs.
However, the Canadian government says Stelco’s current circumstances cannot be separated from the commitments its American owner made to the federal government when acquiring the plant.
Industry Minister Mélanie Joly stressed that the company had made legally binding commitments concerning employment in Canada and that the government was responsible for ensuring those commitments were honoured.
Questions Over Support for Tariffs
Joly specifically referred to statements by Cleveland-Cliffs Chief Executive Officer Lourenco Goncalves in support of US tariffs on steel.
She said the Cleveland-Cliffs chief executive had supported the tariffs imposed by the United States on steel, meaning the company could not now argue that the current situation had arisen because of a sudden and uncontrollable event.
Joly said the company could not describe the circumstances as an event beyond its control and use that argument to avoid responsibility.
Promise to Maintain More Than 1,500 Jobs
According to the Canadian government, specific employment conditions were attached to the approval of Stelco’s acquisition by its new owner.
In 2024, Canada authorised US-based Cleveland-Cliffs to purchase Stelco under the Investment Canada Act. The government says compliance with the employment commitments was a necessary condition associated with that approval.
According to Joly, the company had promised to maintain more than 1,500 jobs. This included commitments to preserve the number of unionised positions, as well as a substantial number of non-union jobs.
Government Requests a Plan
On Monday, Mélanie Joly wrote to Stelco President Paul Simon, requesting a detailed plan from the company.
The letter asks Cleveland-Cliffs to explain how it will fulfil all the commitments made to the federal government when it purchased Stelco. Those commitments include assurances about maintaining jobs.
Joly said Ottawa had not received a response to the letter from Stelco by Wednesday.
Warning That the Full Force of the Law Could Be Used
Canada’s industry minister made clear that the government was waiting for the company’s response. However, she warned that the federal government would take legal action if Stelco failed to present an acceptable plan for honouring its commitments.
She said the company must fulfil its promises; otherwise, the government would use the full force of the law.
According to Joly, the government approved the acquisition by Stelco’s new owner on the basis of specific conditions and commitments. Those conditions, she said, could not simply be ignored.
Different from the Automotive Sector
The Canadian government has described the potential job cuts at Stelco as a different case from recent employment reductions and plant disruptions in the automotive sector.
Joly said some automotive companies were facing their own challenges, but Stelco’s situation was different because Cleveland-Cliffs had made legally binding employment commitments to the Canadian government when it acquired the company.
The government’s position is that, although the trade war and the effects of US tariffs remain important factors, Stelco’s new owner must also honour the promises made at the time of the acquisition.
On that basis, Ottawa has demanded that the company promptly present a plan demonstrating how it will meet its commitment to maintain more than 1,500 jobs and help prevent potentially large-scale job losses.
