Hyundai of South Korea has announced a groundbreaking investment of $21 billion (£16 billion) in the United States, aiming to shield itself from potential tariffs under Donald Trump’s administration.
The automaker intends to allocate $9 billion by 2028, which will create 14,000 jobs and enhance U.S. production capacity to 1.2 million vehicles, along with $6 billion aimed at strengthening strategic collaborations with American firms in areas such as autonomous driving, robotics, artificial intelligence, and advanced air mobility.
Included in this investment is a new $5.8 billion Hyundai Steel facility in Louisiana, projected to produce over 2.7 million metric tonnes of steel annually and generate more than 1,400 jobs. The steel plant is expected to supply steel to manufacturing plants in Alabama and Georgia.
Hyundai is set to hold an inauguration ceremony for its new $7.59 billion automobile and battery factory in Georgia on Wednesday. The company currently has a factory in Alabama, while its subsidiary Kia operates a plant in Georgia. The older facilities have a combined production capacity of 700,000 vehicles annually, whereas the new Georgia facility will reach 300,000 vehicles when fully operational.
Trump remarked: “We’re pleased to announce that Hyundai is committing to a significant $5.8 billion investment in American manufacturing.”
“Investments are flowing in, and we aim to maintain that momentum.”
This announcement coincides with Trump’s threats to impose reciprocal tariffs on several countries starting April 2, potentially affecting South Korea, which has a sizeable trade surplus with the U.S.
“This investment is a clear proof that tariffs are effective,” Trump stated on Monday, adding that further levies on automobiles might be announced this week.
Trump has previously enacted tariffs to bolster U.S. steel and aluminum manufacturers, reinstating global tariffs of 25% on all imports of these metals and extending duties to a wide array of downstream products made from them, such as nuts, bolts, bulldozer blades, and soda cans.
Automotive manufacturers have been actively lobbying the White House against the imposition of large new tariffs on imported vehicles and parts. Earlier this month, General Motors CEO Mary Barra met with Trump to discuss the carmaker’s plans to invest $60 billion in the U.S., raising concerns about tariff policy uncertainty.
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Louisiana Governor Jeff Landry visited South Korea in October to meet with Hyundai regarding the investment initiative.
Hyundai also announced plans to purchase $3 billion worth of liquefied natural gas produced within the United States.
Several companies have revealed investment plans following Trump’s re-election, although some of these announcements have included previously disclosed projects.
In 2022, Hyundai stated its intention to invest around $10 billion in the U.S. by 2025.
