'These are the tariffs at work': Trump aide Lutnick on Essar-owned Mesabi Metallics' $15 billion Iowa steel mill plan

US Commerce Secretary Howard Lutnick said on Monday that President Donald Trump’s steel tariffs had helped drive Essar Group’s plan to build a $15 billion integrated steel complex in Iowa, and that the project would not have gone ahead without the duties. Lutnick credited the investment by Essar-owned Mesabi Metallics to the administration’s trade policy, after Trump last year raised tariffs on imported steel to 50 per cent as part of his push to boost US manufacturing.

Lutnick says Trump steel tariffs drove Essar’s $15 billion Iowa plan

Speaking about the project, Lutnick said, "So these are your 232 tariffs, the steel tariffs at work. Without those tariffs, this mine and steel plant doesn’t get built," referring to the investment by Mesabi Metallics. He said the Essar project would help reduce the US’s dependence on imported steelmaking inputs, particularly iron ore pellets. The US currently gets a significant share of its pellets from Brazil, he said, arguing that reliance on overseas supplies leaves American steelmaking dependent on foreign inputs.

He added, "Now we are unleashing the Iron Range in Minnesota," referring to the Mesabi Iron Range, before turning to the planned steel plant in Iowa. "You go right down the Mississippi to Iowa, where they get to build a USD 15-billion integrated steel plant. This is exactly your plan, because you’re driving steel to America," he said.

India-US trade deal moves closer as Lutnick repeats tariff criticism

Lutnick’s remarks came as the India-US trade deal moved closer to finalisation, with a senior US official saying last week that the two sides were "90-per-cent-plus" there and had only a few issues left to resolve. The comments also followed Lutnick’s repeated criticism of India’s tariff regime. At the India Today Conclave 2025, he said New Delhi had "some of the highest tariffs in the world", adding that they restrict access for US goods and need to be reduced for a broader trade agreement.

Trump calls Iowa plant the largest steel project in US history

Trump unveiled the Iowa project at the White House alongside executives of Mesabi Metallics, describing it as a major boost for American manufacturing. The White House has called it the largest steel plant in US history. Appearing in the Oval Office with company executives, Trump said the facility would produce up to 10 million tonnes of steel annually using iron ore from Mesabi’s Minnesota mine. He said the steel would be "mined, melted and made right here in the USA", and called the project a "tremendous investment" that would produce high-quality steel using advanced technology.

Essar says combined US investment could reach USD 18 billion
The project is part of Essar Group’s wider US investment plans. Essar Chairman Rewant Ruia thanked Trump for supporting efforts to expand manufacturing and said the Iowa complex would help complete a fully integrated American supply chain. The White House said the Iowa plant represented a USD 15 billion investment, while during the event Essar Group Vice-Chairman Ravi Ruia said the combined investment would be about USD 18 billion, which Trump called "fantastic".

Mesabi Metallics targets first steel production by 2030

Mesabi Metallics plans to use iron ore extracted from its mine in Nashwauk, Minnesota, and transport it to Iowa for steel production. The company has invested more than $2.5 billion in developing the Minnesota mine, which Trump described as the first new iron ore mine in the US in more than 50 years. The first phase of the Iowa plant is expected to produce 7.5 million tonnes of steel annually, with capacity potentially rising to 10 million tonnes. First steel production is targeted for 2030.

Project expected to create manufacturing and construction jobs
The plant is expected to create at least 1,750 permanent jobs, while the first phase could generate another 5,000 to 6,000 construction jobs. Trump also said the project is expected to create nearly 2,000 manufacturing and mining jobs and generate an estimated $95 billion in economic impact.

Trump has made steel tariffs a central part of his push to revive US manufacturing, with the administration arguing that higher duties encourage companies to build production facilities in the US rather than import steel. Trump said the US steel industry is "roaring back to life", while Lutnick said the Essar project would strengthen domestic steel production by sourcing iron ore from Minnesota instead of relying on imports.