HAMILTON, Oct. 16 -- Stelco handed more layoff notices to unionized workers at its Hamilton plant this week, and on Wednesday the minister who could take its American owner to court said a forced sale of Canadian assets is among the penalties she is weighing.

Industry Minister Melanie Joly told reporters that "everything is on the table," including forced divestment or financial penalties, in a fight born of the same tariff war that led Ottawa to impose Canada's retaliatory tariffs last month.

"We expect Stelco to follow the undertakings they've committed to the government of Canada," Joly said. A business decision, or even a change in market conditions, she argued, "cannot be used to not follow the commitment."

The company's owner, Cl...