The key facts

  • Canada threatens a forced sale of Cleveland-Cliffs' Canadian assets over planned layoffs of up to 500 Stelco workers
  • Job-preservation commitments were a condition of approving the 2024 deal under the Investment Canada Act
  • Cleveland-Cliffs CEO called Ottawa's stance 'bullying' and linked the layoffs to Trump's tariffs

Ottawa's Ultimatum

On Friday, Canada warned the American steelmaker Cleveland-Cliffs that it could be forced to sell its Canadian assets over plans to cut up to 500 employees at Stelco, the company it acquired. Industry Minister Mélanie Joly said in a speech at the Canadian Club in Toronto that the company is obligated to fulfill the employment commitments made when it purchased the Ontario steelmaker in 2024. 'They must keep jobs in Canada or face the prospect of selling their Canadian assets,' Joly said. Her remarks followed an earlier warning that Ottawa could resort to legal action. 'We hired the best lawyers in town this weekend,' she added to journalists.

Terms of the 2024 Deal

According to the Canadian government, Cleveland-Cliffs committed to preserving jobs at Stelco as a condition of approval for the acquisition under the Investment Canada Act in 2024.

Cleveland-Cliffs' Response

Cleveland-Cliffs CEO Lorenzo Goncalves, in an interview with BNN Bloomberg on Thursday, criticized the Canadian government's reaction, accusing Ottawa of 'bullying and harassment.' He said the planned layoffs would be temporary and necessary due to tariffs imposed by the administration of US President Donald Trump against Canada.

The Government's Position

Joly defended the government's position, noting that Ottawa seeks to protect Canadian workers and ensure foreign investors fulfill their commitments. 'We are sending a message to foreign companies: of course, we are open for business. But if you come to invest in our country, you must honor your commitments,' she said.