President Donald Trump announces $15 billion steel mill in Iowa

President Donald Trump announced Monday the company Mesabi Metallics plans to build a $15 billion steel mill in Iowa, and said he’ll soon visit the state for a rally ahead of the Nov. 3, 2026, election.

Joined by Iowa Republicans, Mesabi Metallics leaders and members of his cabinet, Trump said the project will be the largest steel plant in the U.S., and one of the largest in the world. According to the White House, the mill will create 1,750 permanent jobs paying $49 per hour as well as 6,000 construction jobs as the facility is built in Lee County.

The president linked the company’s decision to build the new facility in Iowa with his tariff policies. Democrats have been critical of Trump’s tariff policies, which they say contribute to rising costs and particularly hurt Iowa’s agriculture economy, but the president argued Monday they encourage businesses to grow the U.S. manufacturing industry.

“Soon after my inauguration, I imposed powerful 50% tariffs on all foreign steel, and now our steel industry is roaring back to life,” Trump said. “Everyone’s building their plant here because they don’t want to pay tariffs. It’s really not that complicated. A lot of people say they don’t understand it, but they do. They just don’t like to give us credit.“

The mill, set to begin steelmaking in 2030, is expected to produce 7.5 million tons of steel per year in its first phase, according to the White House. The facility will process iron ore from a Minnesota mine opened earlier in September by Mesabi Metallics, which is owned by the India-based Essar Group.

It is not yet clear whether local or state tax incentives have been brought forward as part of the construction. Although Iowa state lawmakers have been alerted they may have to return to the Capitol for a special session discussing an incentive package for the steel company, Gov. Kim Reynolds has not yet called for such a session.

When asked Monday if the project was contingent on the approval of tax breaks, U.S. Secretary of Commerce Howard Lutnick responded, “I think this deal is done.”

Reynolds said in a statement the steel mill project is “a transformational opportunity for our country, our state, and American families — one that strengthens national security, creates thousands of high-paying jobs, and provides a reliable supply of high-quality, American-made steel for strategic goods and everyday products.”

“Our commitment in Iowa to fiscal responsibility, tax competitiveness, and long-term economic stability has created one of the nation’s strongest environments for business investment,” Reynolds said. “Now, this opportunity will fundamentally change the economic trajectory of our state and the entire region for decades to come.”

Republicans have a trifecta of control at the Iowa Statehouse. Democrats, like state Rep. Elizabeth Wilson, D-Marion, the ranking member of the state Economic Development Budget Subcommittee, called for the state to ensure public investments for the project are worthwhile for Iowa taxpayers.

“As more details become available after today’s announcement, we also have a responsibility to make sure any state investment is transparent, accountable, and a good deal for Iowa taxpayers,” Wilson said in a statement. “As Iowans continue to struggle, we clearly want this project to succeed in order to deliver lasting economic opportunities for Iowa families and communities for generations to come.”

Trump plans Iowa visit to support GOP candidates ahead of election

The project is set to be built in the 1st Congressional District, represented by U.S. Rep. Mariannette Miller-Meeks. She attended the news conference alongside Trump, thanking the president for his efforts to bring the project to fruition.

“Southeast Iowa, my district, has long had jobs leave, go overseas,” Miller-Meeks said. “It’s heartbreaking when you’re in those communities day after day. So to see the largest steel mill in America being built in Iowa, and in Southeast Iowa … These are families that can make over $100,000, and so it’s just transformational in this area.”

Miller-Meeks’ reelection bid against Democratic challenger Christina Bohannan is expected to be among the most competitive U.S. House races in the country in the 2026 midterms. Election forecaster Sabato’s Crystal Ball rates the race as “leans Democratic,” favoring Bohannan, who lost against Miller-Meeks in the 2024 and 2022 elections.

Though Iowa currently has an all-Republican federal delegation, the state is expected to host several highly contentious elections in 2026. The races for Iowa’s 2nd and 3rd Congressional Districts are also rated as “toss-ups” by political forecasters, as is the U.S. Senate race between U.S. Rep. Ashley Hinson and Iowa Rep. Josh Turek to replace Sen. Joni Ernst, who is not seeking another term. The race for Iowa’s governor seat, currently held by Reynolds, is also rated “leans Democratic” as Democratic Iowa Auditor Rob Sand faces GOP nominee Zach Lahn.

Trump said he planned to come to Iowa to rally with Republicans such as Hinson, and he reflected on his 2024 election win in Iowa, saying, “I think I’m more popular now than I was then.”

“I will say that we’re going to do a great rally, and we’ll all be there together,” Trump said. “We have to get you all elected.”

Further details about Trump visiting Iowa ahead of Nov. 3 have not yet been announced.