Cleveland-Cliffs Inc. CEO Lourenco Goncalves is pressing Canadian Prime Minister Mark Carney to enact strict steel import tariffs to safeguard Canada’s domestic industry. “Significant” trade protections are necessary, the outspoken executive said Monday, citing foreign competition as a major threat—though notably, he did not name American steel as part of the problem.
“That was the main reason why I bought Stelco, because I believe in Canada. The problem is that apparently the Canadians, particularly the Canadian politicians, they don’t believe in Canada,” Goncalves stated during an earnings call. “Let’s see how Prime Minister Carney will react. He’s not a central banker anymore. I don’t like central bankers, but now he’s a prime minister, so time to step up and do what’s necessary for Canada.”
Canada recently announced plans to reduce the amount of foreign steel that can enter the country tariff-free in response to U.S. steel tariffs. Goncalves, a staunch Trump ally, said Canada needs to do more: “Canada can fix themselves. They import an amount of steel into Canada that’s equivalent to the size of the Canadian market,” he said. “The very first thing they need to tell foreigners, get out of my market.”
Additionally, Goncalves revealed that Cliffs has retained JPMorgan Chase & Co. to advise on the potential sale of non-core assets that “could represent billions of dollars of value.” The company is also exploring offers for some recently idled facilities. Cleveland-Cliffs shares surged nearly 16% on Monday, reaching their highest level since March.
Cleveland-Cliffs CEO Lourenco Goncalves told CNBC’s Jim Cramer on Monday that a surge in U.S. auto production is already underway—and the company is well-positioned to meet the rising demand. “We are ready for the surge that we’re going to have in automotive,” Goncalves said. “And that’s right now — not in two years, not in three years, not in five years. It’s right now.”
The steelmaker delivered a stronger-than-expected quarterly report Monday morning, which sent shares soaring 12.45% by market close, with continued gains in after-hours trading. Goncalves said Cleveland-Cliffs has eight finishing facilities across the U.S. ready to capitalize on the current automotive momentum.
The stock’s upward trajectory began two months ago after President Donald Trump vowed to double tariffs on foreign steel, raising them from 25% to 50%. Goncalves praised the move, saying Trump is “creating the foundation for a rebirth of manufacturing, particularly automotive.”
He also criticized the Federal Reserve’s decision not to cut interest rates, expressing concern that a weakening housing market could spill over into the auto sector. “I don’t want that to start contaminating the automotive market,” he warned.
Goncalves emphasized that auto production will be the key driver of earnings growth for Cleveland-Cliffs moving forward. “The more we produce cars in the United States, the more we will be able to produce steel,” he said. “Because you supply them, and with higher production, we dilute our fixed costs, our costs go down, our margins increase, and that’s where my earnings power is.”
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