Stelco Holdings Inc. announced its decision to temporarily halt operations at a section of its Hamilton plant to safeguard the company’s viability amidst decreasing sales due to U.S. tariffs. The move is expected to affect around 500 workers. According to a memo obtained by CBC News, the company will indefinitely idle its cold-rolled and coated operations at its Hamilton Works facility, with the process commencing on Oct. 9.
United Steelworkers Local 1005 President Ron Wells anticipates that approximately 350 steelworkers will face layoffs. He expressed concerns about the impact on employees’ seniority and uncertainty regarding the duration of the layoffs. Stelco clarified that the suspension of operations will not affect its ability to provide hot-rolled steel products.
Stelco’s Vice President of Sales, Frederic Fafard, explained in the memo that the decision was necessary to address market challenges in cold-rolled and coated products caused by ongoing trade disruptions affecting the Canadian steel industry. The company attributed the situation to the influx of foreign steel products into Canada despite efforts by the Canadian government to regulate imports.
Cleveland-Cliffs, based in Ohio, acquired Stelco in a $3.4-billion deal in November 2024. The acquisition included commitments to maintain the existing number of unionized employees. However, the recent layoffs have raised concerns among workers and officials. Industry Minister Mélanie Joly expressed disappointment over the layoffs and emphasized the government’s willingness to support Stelco in navigating the impact of U.S. tariffs.
In a separate development, U.S. President Donald Trump highlighted a $15-billion investment plan by steelmaker Mesabi Metallics as proof of the success of American steel tariffs. The company intends to construct a large plant in Iowa by 2030. The news has prompted discussions among Canadian steelworkers and economists regarding the challenges posed by trade tensions and foreign competition in the steel industry.
Hamilton Mayor Andrea Horwath pledged to advocate for the fulfillment of commitments made by Stelco and Cleveland-Cliffs to the city’s workers. She emphasized the ongoing efforts to defend Canadian industry and protect jobs amid trade uncertainties. The situation has underscored the urgency of finding solutions to sustain the steel sector and safeguard employment opportunities for workers in the region.