Trump Announces $15 Billion Iowa Steel Plant, Credits 50% Tariffs for Industry Revival

U.S. President Donald Trump unveiled a plan to build a new steel plant in Iowa with an investment of $15 billion, calling it the "largest of its kind" in the United States.

Trump made the announcement on Monday, with Energy Secretary Chris Wright calling the investment a "massive economic win" for the key swing state. The statement was made during an Oval Office event attended by steel industry executives and Iowa Republicans.

The president said the steel used would be entirely mined, smelted, and manufactured in the United States, calling it "very unusual."

According to the White House, the new steel plant will be built by Mesabi Metallics, a Minnesota-based company under India's Essar Group. The facility is slated to begin production in 2030, with an expected annual output of 10 million tons of steel.

The plant's raw materials will be supplied by a new $2.5 billion iron ore mine developed by Mesabi along Minnesota's Mesabi Iron Range, which began production on September 17. The U.S. Export-Import Bank will provide up to $10 billion in financing to support Mesabi Metallics' expansion.

The new project is expected to create 1,750 permanent jobs in Iowa and support up to 6,000 construction jobs. Trump added that the project would create 2,000 new manufacturing and mining jobs. Over the next decade, it is expected to generate a $95 billion impact on the U.S. economy.

Trump Credits Steel Tariffs

Trump has prioritized U.S. manufacturing through his trade policies and taken measures targeting steel imports. While the Supreme Court overturned many of his tariffs, duties on imported steel and aluminum have remained in place.

On Monday, he attributed the revival of the U.S. steel industry to the "powerful 50%" tariffs he imposed on steel imports last year. "Now, our steel industry is roaring back. Everybody's building plants here because they don't want to pay the tariffs. It's really not that complicated."

Notably, in June of this year, Trump revised Section 232 national security tariffs on certain aluminum, steel, and copper imports, and lowered tariffs on some steel and aluminum derivative products from 25% to 15%. Under that announcement, foreign companies are eligible for a 10% tariff if at least 85% of the steel or aluminum in their capital equipment is melted and poured or smelted and cast in the United States.

U.S. Manufacturing Continues to Expand

The steel plant announcement comes amid continued expansion in U.S. manufacturing. U.S. manufacturing activity expanded for the eighth consecutive month in August, although the ISM Manufacturing PMI fell to 54.6% from 55.6% in July. New orders, backlog orders, and imports all declined, while production remained strong and the price index remained elevated at 71.1%.

The National Association of Manufacturers said that in the first quarter of 2026, manufacturers contributed $3 trillion to the U.S. economy, with the industry employing nearly 12.6 million workers.

Stock performance: As of year-to-date, the iShares U.S. Manufacturing ETF and the Tema U.S. Manufacturing & Reshoring ETF are up 12.02% and 20.12%, respectively.