Carney Accuses US Steelmaker of Betraying Canadian Workers

Prime Minister Mark Carney accused a US steelmaker of betraying Canadian workers after the company announced layoffs tied to Trump-era tariffs, deepening a trade dispute that has already rattled North American labor markets.

The accusation centers on Cleveland-Cliffs, which said it would idle its Steelton, Pennsylvania plant and lay off about 600 workers. Carney said the company had promised to maintain operations at its Canadian facilities before receiving support from Ottawa.

Cleveland-Cliffs received financial support from the Canadian government during the COVID-19 pandemic. Carney said the company committed to keeping its Canadian plants running as a condition of that aid.

"They made a commitment to Canadian workers, and they broke it," Carney said.

The Steelton plant produces rail products. The company blamed the layoffs on declining demand and the cost burden created by US tariffs on imported steel.

The dispute adds tension to the ongoing trade conflict between the United States and Canada. Tariffs imposed during the Trump administration continue to shape hiring and production decisions across the steel sector.

For Canadian steelworkers, the accusation signals that political pressure may not be enough to preserve jobs when tariff costs push companies to consolidate operations. For US workers in Steelton, the layoffs represent the direct human cost of trade policy.

Carney said Canada would review its support programs for companies that receive public funds, suggesting future aid could carry stricter employment guarantees.

The steel industry remains a flashpoint in US-Canada trade relations, with both governments signaling willingness to protect domestic producers even at the cost of cross-border cooperation.