Carney Slams US Steelmaker Over Layoffs Tied to Trump Tariffs

Canadian Prime Minister Mark Carney on Friday accused Cleveland-Cliffs of betraying Canadian workers after the US steelmaker announced layoffs at its Ontario operations, calling the move a direct consequence of President Donald Trump's tariffs.

Cleveland-Cliffs said it would indefinitely idle its Nanticoke plant and reduce output at its Hamilton facility, affecting about 1,200 workers in total. The company cited "the deterioration of the North American steel market" and "weaker demand" as the reasons behind the decision.

Carney pushed back hard against that framing. "This is a betrayal of Canadian workers, and it will not stand," he told reporters in St. John's, Newfoundland. "This decision is a direct result of Trump's tariffs. It is a direct consequence of US trade actions against Canada."

The layoffs land at a particularly sensitive moment for Canada-US relations. Trump has imposed 50% tariffs on steel imports, a move that has squeezed Canadian producers who rely heavily on the US market. Carney's government has been negotiating with Washington over trade terms while simultaneously trying to shore up domestic manufacturing.

Cleveland-Cliffs, headquartered in Cleveland, Ohio, operates steel plants across North America. The Nanticoke facility, on the shores of Lake Erie, produces flat-rolled steel. The Hamilton plant has been a cornerstone of Canadian steelmaking for decades.

Unifor, the union representing the affected workers, said it would fight the layoffs. "We will not accept this," said Unifor National President Lana Payne. "These plants are viable. These jobs are worth fighting for."

The Ontario government also weighed in. Premier Doug Ford called the decision "devastating news" and vowed to support affected workers and their families.

Carney said his government would respond. "We will defend Canadian steelworkers," he said. "We will defend Canadian industry. And we will hold those who turn their backs on Canada accountable."

The prime minister did not specify what measures his government might take, but he signaled that Cleveland-Cliffs could face consequences for the decision. Canada has already imposed retaliatory tariffs on US goods in response to Trump's trade actions.

For the roughly 1,200 workers facing layoffs in Nanticoke and Hamilton, the immediate future is uncertain. Steel industry jobs in Canada have already been under pressure from global overcapacity and cheap imports, and the tariff war has added another layer of strain.

Carney's sharp rhetoric signals that the issue will remain at the center of Canada-US trade tensions in the coming months, with Canadian steelworkers caught in the crossfire.