Trump announces construction of $15 billion Mesabi steel plant in Iowa

On the 28th (local time), U.S. President Donald Trump announced an investment plan to build a large steel mill worth $15 billion (about 20.4 trillion won) in Iowa.

“I am very pleased to announce that Mesabi Metalics will be building the largest steel mill in American history in the great state of Iowa,” President Trump said at the White House on this day.

“This steel will be mined, smelted, and made right here in the United States,” he said, explaining that once completed, the steel mill will produce 10 million tons of steel per year using iron ore mined in Minnesota.

He also said, "Soon after taking office, he imposed a strong 50% tariff on all foreign steel, and now our steel industry is coming back to life. Everyone is building factories here because they don't want to pay tariffs."

At the same time, he claimed that he was reaping hundreds of billions of dollars in profits from the tariff policy, and said, "This is one of the reasons why if the Republican Party takes control of the House and Senate, we can pay $5,000 (about 6.7 million won) to every adult," and repeatedly promised to pay the so-called 'Trump dividend' if he wins the midterm elections.

Mesabi Metalics is an iron ore mining and processing company headquartered in Minnesota and is an affiliate of Essar Group, a large Indian company. The company recently opened an iron mine in Minnesota.

Mesabi Metalics plans to produce steel in Iowa using iron ore mined here. In the first stage, 7.5 million tons per year will be produced, and the production capacity will eventually be expanded to 10 million tons per year.

A White House official told Reuters that the first phase of the project alone is expected to create 5,000 to 6,000 jobs, including about 350 jobs through the Minnesota mine and at least 1,750 full-time jobs through the Iowa steel mill.

President Trump is focusing on promoting economic performance as voters' dissatisfaction with rising prices is growing ahead of the midterm elections in November, and this announcement was made in this situation.

President Trump has repeatedly emphasized the legitimacy of the tariff policy, saying that manufacturing investment and jobs that had fled overseas through high tariffs are returning to the United States.

“This is what the (Trade Expansion Act) Section 232 tariffs, the steel tariffs, actually work,” said Commerce Secretary Howard Rutnick at the announcement event that day. “Without those tariffs, this mine and this steel mill would not have been built.”

Iowa is a strong Republican region where President Trump won a major victory in the 2024 presidential election, but fierce competition is expected in this year's midterm elections in one Senate seat and three House districts currently occupied by the Republican Party.