Mark Carney blasts U.S.-owned Stelco after Hamilton layoffs, says workers were 'betrayed'

Yet Carney insisted Canada remains ready to negotiate “in good faith” with the U.S. president, saying Ottawa believes a “mutually advantageous trade arrangement that respects both our countries’ sovereignty” is still possible, even as evidence mounts that President Donald Trump‘s tariff sledgehammer is drawing investment south of the border.

“We were very disappointed at this decision by Stelco,” said Carney, speaking in British Columbia. “Our — my personal and our thoughts are with the workers and the families who have been betrayed by the company.” 

“There’s money on the table from the federal government, number one, and the company made representations and has legal obligations for employment,” he said.

When Ottawa approved the foreign takeover of Stelco by Cleveland Cliffs, the company made binding, five-year undertakings to maintain the same levels of unionized workers. The company has said some of the Canadian workers would be able to stay employed, and Carney said the company would be held to that promise.

“We intend to use all powers that we have and pursue them to the full extent of the law,” Carney said. “And I would just take note that this situation is caused by the U.S. tariffs, and that the ultimate owner of and the CEO of the ultimate owner of Stelco, Cleveland Cliffs, applauded President Trump for putting those tariffs on.”

CEO Lourenco Goncalves, who leads Cleveland Cliffs, is a big Trump supporter — which once led Justin Trudeau’s government to hope Goncalves would be an ally in Canada’s efforts to resist Trump’s threatened steel tariffs.

But no such reprieve ever came. Trump slapped 50 per cent steel and aluminum tariffs on all global imports, with no exemptions for what industry leaders say is an integrated North American market.

And with Monday’s layoff announcement, it was clear that Goncalves has placed his bet on Trump’s reindustrialization policy, not on Canada’s ability to dissuade Trump.

Another Trump ally, senior trade adviser Peter Navarro, on Monday slammed Canada for failing to get with the Trump program.

Appearing on a U.S. panel, Navarro said that when Trump first slapped “reciprocal” tariffs on all U.S. trading partners, “we had lines at the door” at the U.S. Trade Representative’s office as countries sought to negotiate new deals with the administration. Those deals have included a baseline level of U.S. tariffs, billions of dollars in investment commitments, and elimination of what the U.S. calls unfair barriers to American exporters.

“It was just amazing. I mean, countries were begging us,” Navarro said, contrasting that with Canada, which he said dispatched lobbyists to “K Street” — in the heart of political Washington — to change Trump’s mind. 

“Canada economically is like a rowboat. We’re an aircraft carrier. Well, how’s that going to end?” he asked rhetorically. “And any Canadians here, like, please, if you’re on K Street, get the hell out of our country, because the problem you have is you lobby this country, and you’ve been successful in the past, and you think you can keep doing that.

“Memo to Canada: You cannot do that. OK, that game is up, and if you interfere in our elections in Maine or Michigan, you will pay even more dearly.”

Navarro later amplified his bluster, posting the clip in a post on X, and writing: “The world gets it now: tariffs bring countries to the table. Everyone lined up to negotiate. Canada? They showed up with lobbyists. Message to them? Get the hell out.”

Asked to respond to Navarro, and to Trump’s assertion a day earlier that Canada would apologize and sign a trade deal with Washington within three to four weeks, Carney first chuckled then said “no response,” before going on to defend both his approach to trade negotiations and his agenda which seeks to wean Canada off its trade dependence on the U.S.

The latest escalation in the trade war — a U.S. ban on certain alcoholic drinks, dairy byproducts and motorcycles, among other goods — came into force at 12:01 a.m. eastern daylight time (EDT) Tuesday, and when Carney was asked whether he intended to respond or escalate with other trade actions, the Canadian prime minister said, “I never ruled anything out.”

He denied making any strategic calculations based on the U.S. political calendar, and said the position of the Canadian government is that the cost of living is “very high in the United States, and there’s things that Canada can do to help lower that cost of living.”

Moreover, Carney added, there are a number of industries under “medium-term” competitive pressure in both the U.S. and Canada as a result of the trade war and “those industries were stronger together.”

In a more “dangerous and divided world,” Carney said fundamental issues of energy security, food security, information security, and financial resilience and security “are best addressed through reliable partnerships. Canada is a reliable partner, and we’re ready to work in any or all of those areas.”

But he also underscored Canada will continue to look elsewhere for trade partners, and for foreign investors in projects in Canada.

“There is a host of strong partners around the world who want to do more with Canada,” Carney said.

“This country is getting stronger, is getting more independent, is getting more resilient, and we’re a better partner. That’s better for Canadians. All of that, and in the end, we’re a better partner for whoever we do deeper trade relations with.”

Shuvaloy Majumdar, Conservative shadow minister for Canada-U.S. relations, in a written statement said the U.S. ban on alcohol and other products has no end in sight. He said ”President Trump is responsible for these unjustified measures. At the same time, the Liberals have failed to weather the storm. For months, Prime Minister Carney offered concessions in trade talks and negotiated from a position of weakness rather than strength.”

“The Prime Minister had time to develop a plan. But instead of making Canada stronger and more competitive, he left Canadian businesses vulnerable to decisions made in Washington. While other businesses received short-term tariff relief in recent months, the Liberal government has done nothing to help the Canadian alcohol industry during this time.”