Stelco Holdings Inc. announced its intention to halt operations at a section of its Hamilton plant to safeguard the company’s future amid pressure from U.S. tariffs. This decision is expected to affect around 500 workers. The company will indefinitely idle its cold-rolled and coated operations at the Hamilton Works plant, with the winding-down process scheduled to commence on October 9th.
According to Ron Wells, president of United Steelworkers Local 1005, roughly 350 steelworkers are anticipated to be laid off. The company emphasized that the suspension of these operations will not impact its hot-rolled steel product supply. Stelco’s vice-president of sales, Frederic Fafard, mentioned in a memo that the move was necessary due to the challenging market conditions for cold-rolled and coated products, exacerbated by trade disruptions affecting the Canadian steel industry.
The imposition of up to 50 percent tariffs on select steel and aluminum imports from Canada by U.S. President Donald Trump in June has significantly contracted Stelco’s market for certain products. Despite efforts by the Canadian government to reduce overall imports, import levels remain high, hindering Stelco’s ability to address the market gap caused by the ongoing trade crisis.
Following Cleveland-Cliffs’ acquisition of Stelco for $3.4 billion in November 2024, the commitment to maintaining the same number of unionized employees was made. Stelco’s move to idle operations in Hamilton while consolidating production at Lake Erie Works is aimed at sustaining its total steel output. The company plans to offer job opportunities at Lake Erie Works to affected Hamilton employees.
Industry Minister Mélanie Joly expressed disappointment at the layoffs, highlighting the government’s readiness to support Stelco amidst the tariff impact. On the other hand, U.S. President Trump’s announcement of a new $15 billion investment by steelmaker Mesabi Metallics in Iowa as a result of American tariffs has raised concerns among Canadian steelworkers.
Hamilton Mayor Andrea Horwath pledged to advocate for Stelco and Cleveland-Cliffs to fulfill their commitments to the city’s workers. The situation underscores the challenges posed by tariffs and the urgency of resolving trade tensions between Canada and the U.S.