Federal officials recently announced plans for a $15 billion Mesabi Metallics factory in Iowa. The White House said the factory will employ 1,750 steelmakers and eventually produce 10 million tons of steel per year. Politicians credited steel tariffs for the new factory. As President Trump put it, “Everyone’s building their plant here because they don’t want to pay tariffs. It’s really not that complicated.”
Or is it? Putting a 50% tariff on most of our imported steel increases the cost of steel, complicating things for U.S. farmers and manufacturers who use steel and steel-containing goods.
Iowa gets 1,750 new steel manufacturing jobs. Thousands of workers at equipment manufacturers like Deere and Vermeer who need steel as an input, and Iowa farmers who ultimately pay more for farm implements and steel buildings, aren’t so lucky.
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