Steel expert says $15 billion megaproject in Iowa could unlock more U.S. growth
Kevin Dempsey, CEO of the American Iron and Steel Institute, told Fox News Digital that the massive new plant could help meet growing domestic demand while creating opportunities for U.S. exports.
A steel industry expert on Monday welcomed President Donald Trump’s announcement of a massive new steel mill in Iowa, saying the project would help meet growing domestic demand while creating opportunities to expand U.S. steel exports.
In an interview with Fox News Digital, Kevin Dempsey, CEO of the American Iron and Steel Institute, made the remarks after Trump announced the $15 billion steel project alongside Mesabi Metallics.
The project is expected to ultimately produce up to 10 million tons of steel per year, primarily using iron ore from the company’s recently opened Minnesota mine. When completed, it would be the largest steel production plant in the United States and part of an all-American supply chain.
Largest US steel plant comes to key red state as Trump unveils $15 billion investment
“I think it would be good for states to produce more steel here, because the demand for steel in the United States is increasing. … We want to have advanced steel production in the United States for domestic industry, for automobiles, for construction, for national defense,” Dempsey said.
“As we continue to grow, we can export more of this steel to other countries.”
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According to Dempsey, the United States grew last year to become the world’s third-largest steel producer, surpassing Japan and behind China and India. The United States accounts for only 4% of global steel production, he said.
“We’re a very vibrant, dynamic industry. We’ve received a lot of new investment in recent years, thanks to the president’s tariffs,” Dempsey said. “But it is still possible to continue to grow. It is possible to further increase domestic production in the United States to meet the demand for steel in the United States. That is why we are encouraged by the construction of new steel mills.”
Kevin Dempsey believes that an increase in domestic capacity could allow American steelmakers to sell more steel abroad. (Rebecca Droke/Bloomberg/Getty Images)
Dempsey described steel as “the backbone of manufacturing,” noting that industries ranging from energy and automotive to construction and national defense rely heavily on the material.
The new plant will also exceed what was once the nation’s largest steel mill by about 2 million tons, Dempsey said.
CANADIAN TARIFFS OF 20% ON US PRODUCTS LIKE MILK, STEEL AND GOLF CLUBS TAKE EFFECT
A steel coil is moved at a steel mill in Hamilton, Ontario, Canada, March 12, 2025. Kevin Dempsey says Canada should adopt tougher tariff protections to protect its steelmakers from foreign competition. (Reuters photos / Reuters)
He added that the announcement proves that Trump’s tariff strategy is taking shape. Federal tariffs also helped reduce foreign steel imports from 44 million tons in 2014 to 25 million tons last year, according to Dempsey.
“The policies he initiated in his first term to rebuild and strengthen our manufacturing sector and start with steel. … We are very pleased that he will continue on this path,” Dempsey said.
Dempsey argued that tariff protections also gave companies greater confidence to invest private capital in new U.S. steel production without fear of foreign overproduction that would weaken their investments.
“This has given companies the confidence to invest their own private funds in new steel mills in the United States, and we are very encouraged,” he said.
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President Donald Trump is set to unveil a $15 billion steel project in Iowa. White House officials say the Mesabi Metallics plant will support more than 1,700 manufacturing jobs, spurring economic reinvestment across America.
Canada, which has historically been a major steel exporter to the United States, should also consider adopting similar tariff policies to protect its domestic producers from foreign competition and strengthen the North American steel market, Dempsey said.
“They should really rethink the current policy approach that they’re taking, and they should take an approach similar to what the United States is taking,” Dempsey said.
“Right now the problem is that they don’t have the same high tariffs in Canada and as a result Canadian steel producers are largely suffering from importing steel from outside the region.”
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