- Hyundai confirms plans for a massive US investment alongside Donald Trump.
- Nearly a third of the $21 billion spend is earmarked for a $5.8 billion steel plant.
- President Trump has introduced tariffs that protect US-based steel producers.
President Trump’s new tariffs on imported goods have stirred confusion and concern among some foreign businesses, but Hyundai is sidestepping the issue with a proactive $21 billion investment in U.S.-based operations.
The Korean company’s plan to spend billions of dollars in America was announced at The White House today. Among the headline projects is a $5.8 billion steel plant slated for construction in Louisiana, expected to create roughly 1,500 jobs. Altogether, Hyundai projects its US investments to add 14,000 new full-time jobs by 2028, with the broader economic impact anticipated to generate over 100,000 direct and indirect positions across related industries.
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Next-generation steel from the plant will be used to build electric cars at Hyundai’s plants in the US. The automaker already produced cars in Alabama and sister company Kia had one in Georgia, but in 2024 Hyundai opened another ‘Metaplant’ Georgia facility which currently builds the facelifted Ioniq 5s.
Of the total $21 billion investment, about $9 billion is earmarked to boost vehicle output, with a target of hitting 1.2 million units annually, Bloomberg says. Besides the Ioniq 5 the new factory will build five other EVs from the Hyundai, Kia and Genesis brands, and last May the company confirmed it would also produce hybrids.
Tariffs Push Automakers Stateside
Korean companies, like some of their counterparts in many other countries, are rushing to move operations to the US to avoid import tariffs announced by President Trump and due to come into force on April 2 to protect American industries.
Speaking at the White House today, Trump highlighted Hyundai’s move as a sign that the policy is working as intended.
“Hyundai will be building a brand-new steel plant in Louisiana that will produce more than 2.7 million metric tons of steel a year, creating over 1,400 jobs for American steelworkers. There will be a major expansion following that,” the president said. “This will be Hyundai’s first-ever steel mill in the United States, one of the largest companies in the world, by the way, supplying steel for its auto parts and plants in Alabama and Georgia, which will soon produce more than 1 million American-made cars every single year.”
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Trump didn’t hesitate to connect Hyundai’s decision to his administration’s tariff strategy. “This investment is a clear demonstration that tariffs work very strongly,” he said. “And I hope other things also, but the tariffs are bringing them in at levels that have not been witnessed.”
On its behalf, the Korean carmaker stated, “Hyundai Motor Group is deepening its partnership with the United States, reinforcing our shared vision for American industrial leadership. The Group’s investment and efforts will further expand our operations in the U.S. and grow our American workforce. Thank you to our American partners, employees, and communities. We’re proud to stand with you, and proud to build the future together.”
A Broader Shift in Trade Dynamics
Steel and aluminum carry a 25 percent duty and that doesn’t only apply to the raw metals, but hundreds of products made from them. And South Korea is on Trump’s naughty list, the president accusing it of ripping off the US through its own import levies.
This big investment plan isn’t Hyundai’s only one that involves working with America and its companies. The Korean automaker and GM are exploring a range of colabs that could give Hyundai a version of the Chevy Colorado pickup and GM a pair of Hyundai-engineered electric vans.
