Hyundai Unveils $21bn US Expansion as Trump Tariffs Approach.
South Korean automotive giant Hyundai has announced a massive $21 billion (£16.3bn) investment in the United States, just days before President Donald Trump is expected to impose new tariffs on trading partners. The move underscores Hyundai's commitment to the US market while also strategically positioning itself ahead of potential trade barriers.
The investment includes a new $5.8 billion steel plant in Louisiana, which will be capable of producing more than 2.7 million metric tons of steel annually and creating over 1,400 jobs. The facility is expected to supply steel for Hyundai's manufacturing plants in Alabama and Georgia, bolstering domestic production capabilities.
Hyundai has also committed $9 billion to expand vehicle production in the US, with a goal of increasing annual output to 1.2 million vehicles by 2028. Additionally, the company will invest $6 billion in partnerships with American firms to drive innovation in key areas such as autonomous driving, robotics, and artificial intelligence (AI).
"This investment is a clear demonstration that tariffs very strongly work," Trump stated during an event at the White House on Monday, emphasizing the impact of his trade policies.
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Trump also hinted that further tariffs on vehicle imports could be announced later this week, potentially affecting Hyundai's home country, South Korea, which maintains a significant trade surplus with the US. The latest investment announcement comes amid escalating trade tensions, with Trump recently imposing a 25% import tax on steel and aluminum, extending levies to include hundreds of metal products.
As part of its expansion strategy, Hyundai is set to inaugurate a $7.59 billion car and battery factory in Georgia on Wednesday, further strengthening its US footprint. The company, along with its affiliate Kia, already operates manufacturing facilities in Alabama and Georgia, and once all three plants are fully operational, they will collectively produce up to one million vehicles annually.
In another boost to US trade, Hyundai has pledged to purchase $3 billion worth of liquefied natural gas (LNG) from American suppliers, reinforcing economic ties between the two nations.
Since Trump’s return to office, several companies have announced major investments in the US, though some of these declarations have reiterated previously planned initiatives. During the Biden administration, Hyundai had already outlined a $10 billion investment in emerging technologies by 2025, highlighting its long-term commitment to innovation and growth.
With Hyundai’s latest expansion plans, the company is not only strengthening its manufacturing presence in the US but also enhancing technological collaborations that could drive the future of mobility. This substantial investment is poised to create thousands of jobs, fuel economic growth, and solidify Hyundai’s position as a key player in the evolving automotive landscape. Despite the looming tariffs, Hyundai’s strategic moves reflect confidence in the American market and a commitment to fostering stronger economic ties between the US and South Korea.
