Randall Denley: Ford wisely keeps his cool over Stelco’s layoffs

Ontario Premier Doug Ford outside his office on Friday, September 25, 2026. Photo by Peter Power /Peter Power

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Ontario Premier Doug Ford is showing admirable restraint in the face of the latest tariff-related layoffs.

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Ford had already taken a run at Stelco’s American boss last year, saying he “doesn’t give two hoots” about his Canadian workers because he supports tariffs. The premier went on to suggest that Stelco should get a new owner, or perhaps the provincial government should buy it.

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Ford’s target was Lourenco Goncalves, the president and CEO of Cleveland-Cliffs, the American company that owns Stelco. Goncalves had praised American steel tariffs, the same ones that have now come back to bite his own Canadian operations.

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Rather than blasting Goncalves after the layoff news this week, Ford let Ontario Finance Minister Peter Bethlenfalvy lead the government response. The minister called the Stelco layoffs “a business decision,” which is exactly what it was.

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In an interview with Global News, Goncalves said the affected operations produce more galvanized steel than the Canadian market itself can absorb and so they only make sense if they can export to the U.S. ”I need an ability to sell more galvanized steel. I can’t increase the domestic market in Canada … if they (Americans) shut down imports of galvanized completely, 100 per cent, we still have more production of galvanized steel in Canada than the domestic markets of Canada. So there’s only one solution. We need to be able to export.”

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Bethlenfalvy said Stelco was eligible for government financial help but did not apply for it. Good for them. Why take taxpayers’ money to keep producing steel for which there is no market?

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Not that Ontario was unwilling to fund that futile activity. Bethlenfalvy said Stelco’s failure to ask for government help was “unfortunate,” then added “But we stand at the ready … our door is always open.”

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Bethlenfalvy cited the $100-million loan the provincial government gave Canadian-owned Algoma steel last year. Shortly after receiving the money, the company laid off 1,000 workers.

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By those standards, the Stelco layoff was a bargain. While the layoffs are indefinite, it’s unlikely that Stelco will disappear altogether. Cleveland-Cliffs paid $3.4 billion for Stelco just two years ago. That would be a big hit to take.

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While Ontario’s response was muted, Prime Minister Mark Carney reacted strongly. He said the workers were “betrayed by the company,” which had made commitments to maintain employment when it bought Stelco in 2024. Carney said there was federal money available to help Stelco retain its workers, but the company wouldn’t take it.