Canada Consults Lawyers After Cleveland-Cliffs CEO Admits Market Protection

Industry Minister Mélanie Joly announced that the Canadian government is consulting lawyers following admissions by Lourenco Goncalves, the chief executive of Cleveland-Cliffs Inc. During a televised interview, Goncalves stated he acquired the Canadian steel company Stelco specifically to protect Cleveland-Cliffs' U.S. operations from Canadian competition, alleging that Stelco had been undercutting prices and flooding the U.S. market.

Joly indicated that these confessions could impact ongoing federal enforcement actions. The timing is critical as Cleveland-Cliffs faces a deadline to prove it will honor job commitments at its Ontario steel mills. This legal scrutiny follows a September 28 announcement by Cleveland-Cliffs to lay off up to 500 workers at Stelco facilities in Hamilton and Nanticoke, citing weak demand and U.S. tariffs.

Goncalves described himself as "persona non grata" in Canada and expressed his intention to sell the company in approximately one year.