President Donald Trump has unveiled plans for a new $15 billion steel plant in Iowa, which he called the "largest" of its kind in the U.S.
Trump made the announcement on Monday, with Energy Secretary Chris Wright touting the investment as a "massive economic win" in a key battleground state. The announcement came during an Oval Office event with steel executives and Iowa Republicans.
The President said the steel will be mined, melted, and made completely in the U.S., calling it "something very unusual."
Mesabi Metallics, a Minnesota-based company owned by India's Essar Group, will undertake the construction of the new steel plant. The plant is slated to commence production in 2030, with an estimated annual output of 10 million tons of steel, according to the White House.
The steel plant will be supplied by a newly developed $2.5 billion iron ore mine by Mesabi along Minnesota's Mesabi Iron Range, opened on September 17. The Export-Import Bank (EXIM) would 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 also added that it would create 2,000 new manufacturing and mining jobs. Over the next decade, it is projected to generate $95 billion for the U.S. economy over the next decade.
Trump Credits Steel Tariffs
Trump has prioritized U.S. manufacturing and targeted steel imports through his trade policy. While the Supreme Court struck down many of his tariffs, duties on imported steel and aluminum remained in place.
On Monday, he attributed the resurgence of the American steel industry to the "powerful 50%" tariffs he imposed on steel imports last year. "Now our steel industry is roaring back to life. Everyone's building their plant here because they don't want to pay tariffs. It's really not that complicated."
Notably, in June, Trump amended the 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%. According to the proclamation, Foreign companies could qualify for a 10% tariff if at least 85% of the steel or aluminum in their capital equipment is U.S.-melted and poured or smelted and cast.
US Manufacturing Continues To Expand
The steel plant announcement comes at a time when manufacturing in the U.S. continues to expand. U.S. manufacturing activity expanded for the eighth straight month in August, although the ISM Manufacturing PMI eased to 54.6% from 55.6% in July. New orders, backlogs and imports declined, while production remained strong and prices stayed elevated at 71.1%.
The National Association of Manufacturers (NAM) said manufacturers contributed $3 trillion to the U.S. economy at an annualized rate in the first quarter of 2026, while the sector employed nearly 12.6 million workers.
Price Action: On a year-to-date basis, iShares U.S. Manufacturing ETF (NYSE:MADE) and Tema U.S. Manufacturing & Reshoring ETF (NYSE:WELD) surged 12.02% and 20.12%, respectively, as per market data.
