Industry Minister Melanie Joly has given Stelco’s U.S. owner 15 days to make good on commitments it made when purchasing the plant 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 agreements that 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.
CEO endorsed tariffs, says Joly
Last month, Cleveland-Cliffs announced it would shut down part of its Ontario operations, 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 Trump Administration has used Section 232 of the American Trade Expansion Act to impose tariffs on steel and aluminum imports, amounting to as much as 50 per cent.
Canada exported US$4.6 billion-worth of steel into the U.S. last year, far less than the US$7 billion in 2024, prior to the expanded tariffs.
The letter contends that Cleveland-Cliffs submitted a number of formal “undertakings” under the Investment Canada Act. Among those, 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.
A drawn-out battle?
Ontario NDP Leader Marit Stiles, speaking at Queen’s Park in Toronto on Thursday, said Stelco workers are concerned about the prospect of “this becoming a very long legal battle.”
While that may be a necessary step to protect jobs in Hamilton, she added, near-term relief for laid-off workers must be a part of the government’s response.
“What is the government going to do to ensure that they are OK? That their families are taken care of?” asked Stiles.
Conservative MP Michael Guglielmin, that party’s senior advisor on steel policy, took issue with what he called “shifting” timelines.
What our workers need today is concrete action,” he said. “Six days ago, Minister Joly had said that we’re only days away from resolving the issue with Stelco and the Stelco workers,” he said in Ottawa. “Today we hear they have 15 days to rehire the workers. ... What our workers need today is concrete action.”
Asked about timelines, Joly said the letter is an important part of a legal process to present and detail evidence ahead of a potential court challenge.