Joly threatens ‘full force of the law’ over Cleveland-Cliffs’ Stelco job commitments

Canada's industry minister says Stelco Holdings Inc. cannot use the trade war to justify cutting jobs it committed to maintain when it bought the Hamilton, Ont.-based steel plant, particularly when the head of its U.S. parent company has publicly backed tariffs on steel.

Mélanie Joly told reporters Wednesday that the chief executive of U.S.-based Cleveland-Cliffs has supported steel tariffs and therefore cannot characterize the company's plan to lay off up to 500 workers due to tariffs and market pressures as an act of God or force majeure beyond its control.

She says if the company does not comply with the federal government's demand for a plan outlining how it will meet all of its commitments, including maintaining more than 1,500 workers, Ottawa will use "the full force of the law."

Canada gave U.S.-based Cleveland-Cliffs the green light to purchase Stelco back in 2024 under the Investment Canada Act.

Joly says Canada's approval of that takeover was contingent on the new owner maintaining the number of union jobs and the majority of non-union positions.

She sent a letter to Stelco president Paul Simon on Monday demanding a plan outlining how Cleveland-Cliffs intends to comply with all of the undertakings it made to Ottawa when it acquired Stelco, including its jobs commitment.

Joly says Ottawa has not yet received a response from Stelco on the letter.

This report by The Canadian Press was first published Oct. 7, 2026.

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