Hamilton-based Stelco now selling steel exclusively in Canada

Cleveland-Cliffs, the U.S. parent company of Stelco, says the Hamilton-based steelmaker is now selling its product exclusively in Canada.

The move comes as a result of the U.S.-Canada tariff war.

Ohio-based Cleveland-Cliffs has stalled work at six facilities and laid off 2,000 workers in the United States since President Donald Trump announced 25 per cent tariff on steel imports into the U.S. earlier this year.

In a May 7 earnings report the company said it is now selling steel made by Stelco exclusively within Canada.

Lourenco Goncalves, the CEO of Cleveland-Cliffs, laid out his company’s plans to shutter steel-making facilities in the U.S. that were losing money.

“We don’t take these decisions lightly, knowing that approximately 2,000 employees were impacted by these operational changes,” said Goncalves.

There have been no layoffs of unionized workers in Hamilton, but some non-union workers have reportedly been let go.

In its earnings report, the company said it is shifting all Stelco sales into the Canadian market.

In 2024 about 70 per cent of sales were in Canada and 30 per cent in the U.S.

Now 100 per cent of Stelco sales will be in Canada.

Peter Warrian, an economist at the Munk School at the University of Toronto, said this decision will create more competition in Canada.

“If you look at what Mr. Carney says, they want to do things about: pipelines, hydroelectric power, housing, mining – those are all steel intensive applications,” said Warrian. “So more competition and an increase in steel demand in the next several years, which is a good thing.”

“That doesn’t wash away the tariffs, but it certainly gives something of benefit to Canada, and secondly it’s good for the steel industry,” said Warrian.

Goncalves has been a vocal supporter of the U.S. President Donald Trump’s tariffs, however last week during an earnings conference call, he acknowledged that the larger general tariffs are hurting his clients.

“That was not part of our plan, absolutely not, nobody saw that coming,” said Goncalves. “Otherwise I would not have been so eager to buy Stelco if I knew that Canada would not be treated like a friend.”

Cleveland-Cliffs purchased Stelco last fall in a $3.4-billion deal with the former ownership of Bedrock Industries and various equity funds.

Goncalves said he believes the broader tariff war with Canada is temporary and said a recent meeting between Prime Minister Mark Carney and Donald Trump was a good step forward.

“In terms of normalizing the relationship between the United States and Canada, and there is no other way to do – we are tied by the hip,” said Goncalves. “And we cannot go without each other, we need each other and we should continue to work that way.”

CHCH News has reached out to Cleveland-Cliffs and the local union representing steelworkers for comment.

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