46

South Korean automaker Hyundai has unveiled plans to invest $21 billion in the United States, strengthening its presence in the country amid looming trade tariffs. The announcement comes just days before the U.S. government enacts new tariffs on international trade partners starting April 2.

A key component of this investment is a $5.8 billion steel plant in Louisiana, designed to support Hyundai’s expanding operations. Additionally, the company will increase vehicle production and invest heavily in artificial intelligence and self-driving technology.

President Donald Trump praised Hyundai’s decision at a White House event, stating that it reflects the effectiveness of his trade policies. He also hinted that further tariffs on foreign car imports could be introduced in the coming days.

Hyundai’s U.S. Expansion: Jobs and Production Growth

The newly planned Louisiana steel facility will have an annual production capacity of over 2.7 million metric tons and is expected to generate more than 1,400 jobs. Hyundai intends to use this plant’s steel for its existing vehicle manufacturing sites in Alabama and Georgia, enhancing its supply chain efficiency.

Beyond steel production, Hyundai announced a $9 billion investment to boost vehicle output in the U.S., targeting 1.2 million units per year by 2028. The automaker also committed $6 billion toward robotics, AI, and autonomous vehicle development in collaboration with U.S.-based technology firms.

As part of this expansion, Hyundai is preparing to open a $7.59 billion car and battery manufacturing plant in Georgia this week. The company already operates a factory in Alabama, while its affiliate, Kia, runs a separate production site in Georgia. Once all facilities are fully operational, Hyundai expects to manufacture one million vehicles annually in the U.S.

Energy and Technology Investments Drive Hyundai’s Strategy

Hyundai also confirmed plans to purchase $3 billion worth of liquefied natural gas (LNG) from American producers. This move aligns with broader efforts to strengthen economic ties between the U.S. and South Korea.

Since President Trump’s return to office, several multinational corporations have announced new investment plans in the U.S. However, many of these commitments reiterate previous pledges made under prior administrations.

During President Joe Biden’s tenure, Hyundai had already promised to invest $10 billion in advanced technology by 2025. The latest expansion announcement comes just before Trump’s April 2 deadline for imposing new trade tariffs, which could impact South Korea due to its trade surplus with the U.S.

Implications of New U.S. Tariffs on the Auto Industry

Last month, the Trump administration imposed a 25% tariff on imported steel and aluminum, extending these duties to hundreds of other metal products, including fasteners and beverage containers. The latest trade measures may further target the automobile sector, prompting concerns from major U.S. automakers.

Industry giants Ford and General Motors have urged the administration to reconsider tariffs on vehicle imports, warning that such measures could lead to higher consumer prices and disrupt supply chains. Despite these concerns, Hyundai’s latest investment signals confidence in its U.S. market strategy, reinforcing its long-term commitment to American manufacturing and innovation.