US Commerce Secretary Howard Lutnick on Monday credited President Donald Trump’s steel tariffs for prompting Indian conglomerate Essar Group to plan a USD 15 billion integrated steel complex in Iowa, saying the project would not have been possible without the duties. Trump had doubled tariffs on imported steel to 50 per cent last year as part of his efforts to encourage manufacturing in the US.
“These are your 232 tariffs, the steel tariffs at work. Without those tariffs, this mine and steel plant doesn't get built,” Lutnick said, referring to the investment by Essar-owned Mesabi Metallics.
Lutnick’s comments come amid his repeated criticism of India’s tariff policies. Speaking at the India Today Conclave 2025, he had said that New Delhi imposes “some of the highest tariffs in the world”, arguing that they limit access for US goods and need to be lowered for a broader trade agreement.
The India-US trade deal is currently nearing finalisation, with a senior US official saying last week that the two countries were “90-per-cent-plus” close to an agreement, with only a few issues still to be resolved.
Lutnick said the Essar project would also help reduce US dependence on imported steelmaking materials, especially iron ore pellets. He noted that the US currently sources a substantial portion of its pellets from Brazil and argued that dependence on overseas supplies leaves American steel production reliant on foreign inputs.
“Now we are unleashing the Iron Range in Minnesota,” the Commerce Secretary said, referring to the Mesabi Iron Range, before highlighting the planned steel facility 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.
ESSAR'S MASSIVE STEEL PLANT INVESTMENT
Trump unveiled the Iowa project at the White House alongside Mesabi Metallics executives, describing it as a major boost for US manufacturing. The White House has termed it the largest steel plant in American history. The project forms part of Essar Group’s broader investment plans in the US.
Essar Chairman Rewant Ruia thanked Trump for backing efforts to expand manufacturing and said the Iowa complex would help establish a fully integrated American supply chain.
Mesabi Metallics intends to use iron ore mined in Nashwauk, Minnesota, and transport it to Iowa for steel production. The company has invested more than USD 2.5 billion in developing the Minnesota mine, which Trump described as the first new iron ore mine in the US in more than five decades.
The first phase of the Iowa facility is expected to produce 7.5 million tonnes of steel annually, with the potential to increase production to 10 million tonnes. The first steel output is targeted for 2030. The project is expected to generate at least 1,750 permanent jobs, while its initial construction phase could create another 5,000 to 6,000 jobs.
Trump has made steel tariffs a key component of his effort to revive American manufacturing. His administration increased tariffs on imported steel to 50 per cent, arguing that higher duties would encourage companies to establish production facilities in the US rather than rely on imported steel.
The Essar project provides the administration with a prominent example supporting its argument that tariffs can encourage companies to invest in domestic steel production.
