VideoEnergy & Economy
Cleveland-Cliffs told Congress it blocked Stelco from American market before tariffs
Ottawa has asked the competition watchdog to examine whether Cleveland-Cliffs bought Stelco in bad faith, with layoffs and Canada's foreign investment promises at stake.
Summary
Industry Minister Melanie Joly has asked the Competition Bureau to examine whether Cleveland-Cliffs bought Stelco in bad faith. The request follows testimony in January 2026 by Cleveland-Cliffs CEO Lourenco Goncalves to the Congressional Steel Caucus, in which he said the company had blocked Stelco from selling steel into the U.S. market, starting before Trump's tariffs reached Canada. The bureau cleared the 2024 takeover, which also came with 34 written undertakings under the Investment Canada Act.
The video separates the two federal tests. Investment Canada Act undertakings are about promises, including minimum workforce levels of 1,766 unionized and 603 salaried employees. Cleveland-Cliffs says Stelco is in full compliance and calls the layoffs temporary. The Competition Act asks about markets and customers, and the video argues the CEO's own recorded words are harder to rebut than payroll figures.
The video also stresses the limits. The bureau has already reviewed this purchase once, and a ministerial letter is a request rather than an investigation, let alone a verdict. As of Friday, Ottawa had not announced a lawsuit. The watchdog's reply is the next step in testing whether Canada's conditions on foreign buyers hold.
Key points
- Cleveland-Cliffs paid $70 per share for Stelco in 2024, mostly in cash.
- The Competition Bureau issued a no-action letter on October 9, 2024.
- Cleveland-Cliffs signed 34 written undertakings under the Investment Canada Act.
- Minimum workforce pledged: 1,766 unionized and 603 salaried employees.
- Up to 500 layoffs were announced September 28; 175 workers laid off in Hamilton so far.
- Joly's 15-day compliance deadline expired on Friday.
Questions answered
What did Stelco's owner tell Congress?
In January 2026 testimony to the Congressional Steel Caucus, CEO Lourenco Goncalves said Cleveland-Cliffs had blocked Stelco from selling steel into the U.S. market. He said the blocking began before Trump returned to office in January 2025.
What is Ottawa asking the Competition Bureau to examine?
Industry Minister Melanie Joly asked the acting Commissioner of Competition to examine whether Cleveland-Cliffs bought Stelco in bad faith. Her letter calls the matter highly questionable and possibly reviewable under the Competition Act. The letter also points to the bureau's own 2024 no-action letter.
Has Ottawa launched a lawsuit against Cleveland-Cliffs?
As of Friday, Ottawa had not announced a lawsuit, even though Joly's 15-day deadline had expired. The video notes that a ministerial letter is a request, not an investigation, and that an investigation is not a verdict. Cleveland-Cliffs says Stelco is in full compliance.
Prepared by the CanadaNext Editor with AI assistance from public reporting and CanadaNext's own videos. Sources are linked. How we work