Mark Carney threatens legal action against Stelco over Hamilton layoffs

Prime Minister Mark Carney issued a sharp warning of potential legal action against steelmaker Stelco and its parent company on Tuesday, 29 September 2026, accused the firm of breaching binding agreements, and declared that Canadian workers had been betrayed following a round of job cuts linked to international trade penalties.

The rebuke follows an announcement by Stelco Holdings regarding layoffs affecting up to 500 workers across its Hamilton and Lake Erie facilities. According to Newsday, the company plans to indefinitely idle cold-rolled and coated operations at its Hamilton plant while shifting production to its Lake Erie facility in Nanticoke, Ontario. Cleveland-Cliffs maintained that overall steel tonnage would remain unchanged and that affected employees might find absorption at the Nanticoke site.

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Stelco explained in an internal employee memo that U.S. Tariffs severely contracted the market for its galvanized and cold-rolled products. Demand across traditional markets dropped sharply during the second quarter compared to the prior baseline, including a notable domestic contraction.

Speaking in British Columbia on Tuesday, 29 September 2026, Carney laid the blame squarely on the trade policies enforced by the Trump administration and corporate allies who endorsed them. He noted that Cleveland-Cliffs CEO Lourenco Goncalves had publicly applauded the protective duties imposed by the United States. Additional reporting from The Star highlights that the federal government approved the foreign takeover after securing binding, five-year undertakings requiring the company to maintain unionized worker levels.

"We intend to use all powers that we have and pursue them to the full extent of the law,"

Mark Carney, Prime Minister, via The Star

Carney asserted that federal support remains accessible to help safeguard domestic employment. He emphasized that financial assistance is available, stating that the corporation made formal representations and undertook explicit legal duties regarding staffing levels.

Political friction surrounding the steel sector extends beyond domestic employment disputes into broader business trade diplomacy. Senior U.S. Trade adviser Peter Navarro criticized Canadian negotiation tactics during a public panel appearance, contrasting international trade strategies with those deployed by Ottawa. Meanwhile, Conservative shadow minister for Canada-U.S. Relations Shuvaloy Majumdar criticized the Liberal administration, arguing that officials negotiated from a position of weakness and left local enterprises exposed to external decisions.

Carney defended his broader strategy to diversify trade partnerships and reduce economic reliance on the United States, maintaining that Canada remains a reliable partner for global commerce.