Essar Group will build a mega US steel plant with $18 billion investment, announced after US President Donald Trump doubled tariffs on steel and aluminium to 50%. The project is the largest single-location green steel plant by an Indian company in US.
US President Donald Trump, with Essar's Ravi Ruia and Prashant Ruia, announced at White House - a 6 million tonne per annum facility in Texas or Louisiana, with direct reduced iron, hydrogen-ready.
Read more - US-India Strategic Pact: Landmark Defence & Tech Deal Finalized
Why now? Trump tariffs of 25% on steel since March 2025 made imports unviable. But for Essar, which exited Indian steel after 2017 insolvency, this is re-entry via US. While outflow of investment from India worries economists, Essar says 70% equipment will be sourced from India - engineering exports.
Read more - Diplomatic Alarm: India's Trial in a World of Chaos
India's steel exports to US fell 40% after tariffs. Jindal, JSW also exploring US plants. For India, this is tariff-jumping FDI - invest where you sell. For US, jobs - 5,000 construction, 2,000 permanent.
The risk: US steel demand is cyclical, green steel premium is still high. But with Inflation Reduction Act incentives, Essar may get $2bn subsidies.
Tags: #Essar #USSteel #TrumpTariff #GreenSteel #MakelnAmerica #IndianInvestment #SteelIndustry #FDI #TradeWar #Ruia