A standoff between Ottawa and Stelco's US owner, Cleveland-Cliffs Inc., over layoffs in Hamilton is drawing attention to how US tariffs are affecting Canadian industry. Back in September, Cleveland-Cliffs announced the closure of some operations in Hamilton, largely in response to US tariffs, which would result in layoffs.

• On September 28, Cleveland-Cliffs announced it would temporarily lay off up to 500 workers at Stelco's Hamilton and Nanticoke plants, citing US tariffs. Industry Minister Mélanie Joly said this breaks job commitments made when the company bought Stelco in 2024, and threatened legal action, including a forced sale of its Canadian assets.
• Cleveland-Cliffs now wants a meeting. The company said Stelco is in full compliance with its commitments. It says it asked Joly for a meeting on October 23 to discuss recalling the 175 workers currently laid off and has not received a reply. Joly has demanded a plan to restore jobs before a meeting.
• Cleveland-Cliffs blames overseas dumping of galvanized steel. However, Global Affairs Canada data showed 54.1% of galvanized and coated steel sheet imports in the first nine months of 2026 came from the US, which is exempt from Canada's import restrictions.
• The Bank of Canada says tariff-hit industries account for about 1% of Canadian output and employment, but roughly 15% of exports. It reports steel exports to the US have roughly halved and lumber exports were about 20% below 2024 levels.
• Trade talks have picked up in recent days. Reports say Canada and the US are working on a limited deal to ease US tariffs, possibly before the November 3 US midterm elections. Canadian Prime Minister Mark Carney says talks have gained momentum, but no agreement has been announced.

The Stelco dispute is a local example of a broader strain on Canada's export-focused industries. A trade deal could ease that pressure, but the outcome remains uncertain.

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