SEOUL, South Korea – Hyundai, one of the leading carmakers in South Korea, has announced a massive $21 billion investment plan in the United States. The plan includes the construction of a new $5.8 billion steel plant in Louisiana as well as significant investments in technology such as autonomous driving and artificial intelligence. This announcement comes amidst looming new tariffs on trading partners by the US administration, set to be implemented on April 2.
During an event at the White House on Monday, US President Donald Trump expressed his approval of the investment, stating, “Money is pouring in. We want to keep it that way.” Trump hailed the effectiveness of tariffs, attributing this investment as a clear demonstration of their success. Hyundai’s plan also entails the creation of over 1,400 jobs through the new steelmaking facility, which is projected to produce 2.7 million metric tons of steel annually.
Additional aspects of Hyundai’s plan include a $9 billion investment to increase vehicle production in the US to 1.2 million units per year by 2028. The company also committed $6 billion towards partnerships with US firms to advance technology in self-driving vehicles, robotics, and AI. Moreover, Hyundai is scheduled to inaugurate a new $7.59 billion car and battery factory in Georgia, complementing its existing manufacturing facilities in Alabama and Georgia.
Notably, Hyundai’s decision to invest in the US aligns with a broader trend of companies making substantial investments in the country. However, it is essential to distinguish between new commitments and previously announced plans. The looming possibility of reciprocal tariffs on countries worldwide may impact Hyundai’s home country, South Korea, given its significant trade surplus with the US.
In recent months, the US government, under the Trump administration, has enforced import taxes on various products, including steel, aluminium, and multiple metal items. Amidst this backdrop, US automakers like General Motors and Ford have been vocal in advocating for exemptions on car and vehicle part imports from the new tariffs.