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South Korean conglomerate Hyundai Motor Group is set to unveil a significant $20 billion investment in the United States, focusing on expanding its manufacturing presence.
A major component of this plan is the construction of a $5 billion steel plant in Louisiana, expected to employ around 1,500 workers. This facility will manufacture advanced steel for Hyundai’s U.S. automotive plants, enhancing its electric vehicle (EV) production capabilities.
White House Announcement with Key Officials
The investment will be formally announced at the White House on Monday, with President Donald Trump, Hyundai Chairman Euisun Chung, and Louisiana Governor Jeff Landry in attendance.
Hyundai’s expansion aligns with the broader trend of global corporations increasing their U.S. manufacturing footprint to mitigate potential trade disputes and tariff concerns.
Avoiding Tariffs and Strengthening Localization
Hyundai’s move comes as international businesses seek to reduce their exposure to tariffs ahead of the April 2 deadline set by President Trump. Other global firms, including Taiwan Semiconductor Manufacturing Co. (TSMC) and Japan’s SoftBank, have recently disclosed similar U.S. investment plans.
Hyundai Motor CEO José Muñoz emphasized that increasing local production is the most effective strategy for navigating potential trade restrictions.
Already a leading EV manufacturer in the U.S., Hyundai operates two major automotive plants in Alabama and Georgia. As part of its latest investment, the company is also expected to announce the launch of a third U.S. automotive plant, further solidifying its position in the North American market.
U.S.-South Korea Trade Disputes and Tariff Concerns
South Korea is among the nations with which the U.S. has a trade imbalance. Earlier in March, President Trump criticized South Korea for imposing higher tariffs on U.S. exports, claiming its rates were four times higher than those of the United States.
However, the South Korean government has refuted this claim, stating that its effective tariff rate on U.S. imports was just 0.79% in 2024 under the existing free trade agreement.
When asked for comment regarding Hyundai’s planned investment, the White House directed attention to a post on social media platform X from Press Secretary Karoline Leavitt.
The statement highlighted the economic benefits of the investment, stating, “More investments, more jobs, and more money in the pockets of hardworking Americans – all thanks to President Trump’s economic policies.”
Hyundai Declines to Comment
While the announcement has sparked discussions about trade policies and economic growth, Hyundai has not issued an official statement on the investment beyond its expected announcement at the White House.
Key Takeaways:
Hyundai is investing $20 billion in U.S. manufacturing, including a $5 billion steel plant in Louisiana.
The initiative aims to boost EV production and reduce exposure to tariffs.
A third U.S. automotive plant is expected to be announced in Georgia.
The investment aligns with global onshoring trends amid trade tensions.
The White House supports the move as a boost to U.S. jobs and economic growth.
This strategic investment underscores Hyundai’s commitment to localizing production and adapting to evolving trade policies.
