Manufacturing

Amid tight Iowa midterm races, President Trump emphasises steel industry revival with project announcement.

Just weeks before the midterm elections, United States President Donald Trump has announced that a Minnesota-based steel manufacturer intends to build a $15bn steel mill project in Iowa, as the White House tries to highlight its focus on domestic manufacturing.

On Monday, joined by executives from Mesabi Metallics, which recently opened Minnesota’s first new iron ore mine in 50 years, Trump announced the project. It is expected to begin production in 2030 and could bring more than 1,700 jobs to the region, with an initial production capacity of 7.5 million tonnes per year.

The first phase of construction for the project will generate 5,000–6,000 construction jobs, a White House official told Al Jazeera.

The plant in Iowa will use iron ore from the Mesabi Iron Range in nearby Minnesota. Mesabi, which is owned by Indian conglomerate Essar Group, invested more than $2.5bn to build the mine in Minnesota.

“President Trump is delivering on his promise to rebuild American industry, re-shore manufacturing, and create new jobs. Today’s announcement underscores the president’s historic efforts to revitalize the US steel industry—supporting local communities, strengthening supply chains, and protecting our national security,” White House Spokeswoman Taylor Rogers said in a statement to Al Jazeera.

The steel industry has loomed over the first half of Trump’s second term in office. The president imposed 50 percent tariffs on steel and aluminium imports last year in an effort to boost domestic production, but also threatened to increase prices of products that use those materials, from soda cans to washing machines to cars.

“These are your 232 tariffs, the steel tariffs at work. Without those tariffs, this mine does not get built, and this steel plant does not get built”, US Commerce Secretary Howard Lutnick said in the Oval Office on Monday.

Trump also solidified the US government’s stake in US Steel, which was acquired by Japan’s Nippon Steel in June 2025. As part of the deal, the US government received a so-called “golden share”, which gives the president the authority to appoint a board member to weigh in on decisions that would impact domestic steel production.

Midterm stakes

The announcement comes a little more than a month ahead of the US midterm elections, and the economy is top of mind for US voters.

Among Republicans, Trump is losing steam on his handling of economic issues, with a new September 21 Ipsos poll finding that 56 percent approve of his handling of the economy, down from 80 percent.

Iowa is in play as a seat Democrats could flip in the midterm elections, with Republican Ashley Hinson facing Democrat Josh Turek in November and with polls suggesting a tight race.

Hinson joined the president in the Oval Office for the announcement.

A poll conducted by the Republican-aligned pollster the Trafalgar Group showed Hinson with a two-point lead, while an InsiderAdvantage poll, which is considered more nonpartisan, found Turek leading by two points.

Gov. Gavin Newsom on Friday vetoed legislation that would have narrowed exemptions to the California Environmental Quality Act for advanced manufacturing facilities amid pushback from business and industry groups.

Senate Bill 954 from state Sen. Catherine Blakespear (D-Encinitas) would have rolled back parts of last year’s controversial overhaul of CEQA, which fast-tracked approvals for a broad array of housing and infrastructure projects in an effort to ease new construction in the state.

Critics said the overhaul opened up a path for advanced manufacturing facilities such as strip miners, chemical producers, battery recyclers and semiconductor plants to open in communities without any environmental review. Dozens of environmental groups including the Sierra Club, the Natural Resources Defense Council and California Environmental Voters urged the governor to sign the legislation into law, arguing that it would have provided essential protections for communities that already experience the worst pollution from industrial facilities.

In his veto message, Newsom said last year’s CEQA reform was a “long overdue overhaul to get California building again.”

“While I appreciate the author’s stated intent to ensure these reforms do not result in unintended adverse impacts on the environment, this bill does not merely clarify or refine the existing exemption. It repeals the CEQA exemption for advanced manufacturing facilities,” the governor wrote. “Further, the bill’s numerous new siting, operational, and emissions requirements would make the narrower exemption impractical for many of the projects it was intended to support.”

In a statement, Blakespear said she was “disappointed” in the governor’s decision. While some of the new CEQA exemptions are important to stimulate construction, the recent near-miss chemical disaster in Garden Grove — which prompted thousands of evacuations in May —illustrates the danger that can come from siting advanced manufacturing facilities in communities, she said.

“We should not have to wait for another emergency before recognizing that sweeping — and rushed — exemptions from environmental review need reasonable guardrails,” Blakespear said. “Protecting communities and workers is not an impediment to economic growth; it is part of responsible growth. We need guardrails to these CEQA exemptions to safeguard Californians and ensure the environment isn’t damaged.”

Newsom’s veto came amid pushback from industry groups and prominent business organizations including the California Chamber of Commerce and the California Manufacturers & Technology Assn. The California Department of Finance also was opposed to the bill, which it described in an analysis as “inconsistent with Administration policy.”

Lance Hastings, chief executive of the California Manufacturers & Technology Assn., said in a statement Friday that the governor’s veto protects “the ability of manufacturers to innovate and create here in California.”

Manufacturing generates $382 billion a year for California and supports 1.24 million jobs, he said.

But opponents said Newsom’s decision will ultimately endanger communities and leave more people exposed to industrial hazards.

“Frontline communities across California continue to face consequences from polluting industries that have damaged our air, and water for the sake of corporate profit,” said Asha Sharma, deputy director at the nonprofit Sierra Club California. “SB 954 was developed to ensure those same mistakes do not continue.”

Blakespear said she will continue working on the issue next year.