Hyundai Motor Group has announced a $21 billion investment in its U.S. operations. The move comes as President Donald Trump prepares to introduce new tariffs on trade partners starting April 2. Hyundai’s investment includes building a $5.8 billion steel plant in Louisiana, designed to strengthen its American production chain.
Investment Plans: A $5.8 Billion Steel Plant
Hyundai will construct a steel plant in Louisiana, costing $5.8 billion. The plant will produce over 2.7 million metric tons of steel annually. More than 1,400 jobs will be created. Hyundai confirmed that the plant will supply its car factories in Alabama and Georgia.
Expanding U.S. Production Capacity
Hyundai also plans to increase its U.S. production capacity. It will invest $9 billion to produce 1.2 million vehicles annually by 2028. Additionally, Hyundai has pledged $6 billion to develop cutting-edge technologies. These technologies include autonomous driving, robotics, and artificial intelligence in partnership with U.S. companies.
Trump’s Reaction to Hyundai’s Investment
President Trump praised Hyundai’s plans. He believes the investment proves his tariff strategy is effective. At a White House event, Trump said the tariffs are influencing foreign companies. He also warned that new tariffs on imported vehicles could be announced soon.
New Plant in Georgia and LNG Deal
Hyundai is opening a $7.59 billion car and battery production facility in Georgia this week. Once fully operational, Hyundai’s three U.S. factories will produce one million vehicles annually. Additionally, Hyundai has agreed to purchase $3 billion in liquefied natural gas (LNG) from U.S. energy companies.
Hyundai’s Commitment to U.S. Technological Development
This investment comes after Hyundai’s previous commitment of $10 billion. In 2021, Hyundai pledged to invest in technological development through 2025. The company focuses on advancing electric vehicles, autonomous driving, and other future technologies.
Impact of New Tariffs on South Korea
The new tariffs, set to take effect on April 2, may affect South Korea. The country currently enjoys a trade surplus with the U.S. However, the new tariffs could disrupt this. Last month, Trump imposed a 25% duty on imported steel and aluminum. This has already raised concerns for many industries, including automotive.
U.S. Car Makers Push for Tariff Exemptions
American automakers, such as General Motors and Ford, have urged the Trump administration to exempt vehicles and parts from the tariffs. They argue that the tariffs could raise costs for consumers and disrupt their supply chains.
Hyundai’s Strategic U.S. Expansion
Hyundai’s $21 billion investment highlights the company’s strategy to expand in the U.S. This investment includes production and technological partnerships with U.S. firms. As tariff tensions continue to build, Hyundai’s commitment to local manufacturing positions it well for the future.