Hyundai Marks Major $21 Billion US Investment Amid Looming Tariffs

Hyundai Motor Company has announced a monumental $21 billion investment in the United States, coinciding with impending tariffs scheduled to be enforced by President Donald Trump. The investment breakdown includes a significant $5.8 billion allocation for a new steel plant in Louisiana, which will produce over 2.7 million metric tons of steel annually and is projected to create more than 1,400 jobs. In addition to expanding its steel production, Hyundai plans to increase its vehicle production capacity in the U.S. to 1.2 million vehicles by 2028, with an investment of $9 billion. The company also intends to invest $6 billion in developing technologies such as autonomous driving and artificial intelligence through partnerships with American firms.

The announcement precedes a critical date of April 2, when Trump is expected to impose new tariffs on a range of imports, potentially impacting South Korea, Hyundai’s home country. Trump’s assertion is that the tariffs stimulate domestic investment, and he’s hinted at further measures against vehicle imports. Previously, his administration had imposed a 25% import tax on steel and aluminum, alongside tariffs on various metal products.

Hyundai is actively growing its U.S. manufacturing presence, with a ceremony for a new $7.59 billion car and battery factory in Georgia expected shortly. This new facility will join the company’s existing plants in Alabama and Georgia, collectively having the capacity to produce one million vehicles per year.

Furthermore, Hyundai has confirmed plans to purchase $3 billion worth of liquefied natural gas from the U.S. market, solidifying its commitment to American investments. The recent surge in announcements from various companies, including sentiments voiced by U.S. automakers like General Motors and Ford, indicates a push for tariff exemptions on imported vehicles and parts.