Canadian Prime Minister Mark Carney threatened legal action against Cleveland-Cliffs after its Stelco subsidiary announced layoffs affecting up to 500 workers at its Hamilton, Ontario, plant. Stelco said it would indefinitely idle cold-rolled and coated operations and shift production to its Lake Erie Works in Nanticoke, Ontario, while Cleveland-Cliffs said overall steel tonnage in Canada would remain unchanged and that many affected workers would be absorbed. The company attributed the move partly to U.S. tariffs, saying demand for its cold-rolled and galvanized products fell almost 25% in the second quarter from the 2024 quarterly average, including a 10% decline in Canada. Carney criticized Cleveland-Cliffs CEO Lourenco Goncalves for supporting U.S. President Donald Trump's 50% steel tariffs and said the federal government had offered financial assistance to preserve jobs. Canada approved Cleveland-Cliffs' C$3.4 billion ($2.4 billion) takeover of Stelco in October 2024 subject to legally binding five-year employment commitments.