Hyundai to Invest $20 Billion in the U.S. Market for Growth & Innovation

Hyundai, based in South Korea, and President Donald Trump revealed a significant $20 billion investment aimed at on-shoring in the United States during an announcement at the White House on Monday. This investment features a $5 billion steel manufacturing plant set to be built in Louisiana.

The Louisiana facility, which will cost $5.8 billion, marks Hyundai’s inaugural steel production site in the U.S. It is expected to generate over 2.7 million metric tons of steel annually and create more than 1,400 jobs. According to Trump, the steel produced will be supplied to automotive plants located in Alabama and Georgia.

The announcement was made in the presence of Trump, Hyundai Chairman Euisun Chung, and Louisiana Governor Jeff Landry.

It was the company’s biggest US investment to date, according to Chung.

White House Press Secretary Karoline Leavitt posted on social media, saying, “More investments, more jobs, and more money in the pockets of hardworking Americans – all thanks to President Trump’s economic policies.”

“This investment is a clear demonstration that tariffs very strongly work,” Trump said Monday afternoon.

Chung revealed that the decision to establish the plant in the Savannah, Georgia region was sparked during his 2019 meeting with President Trump in Seoul. He noted that this initiative aligns with the start of Trump’s second term, adding a special significance to the occasion.

In early January, trade publications indicated that Hyundai was contemplating a steel plant in the U.S. in anticipation of Trump’s second term, aiming to reduce production costs while preparing for his protectionist economic measures.

Trump has already implemented 25% tariffs on steel and aluminum imports, along with tariffs on vehicles from Asia and Europe that are set to take effect next month. The goal is to increase domestic car production, but the process is complex.

For instance, Stellantis, which produces vehicles in North America under the Jeep, Ram, Dodge, and Chrysler brands, has agreed to reopen a closed plant in Illinois as part of a settlement to resolve a strike by the United Auto Workers in 2023.

It pointed to those re-opening plans once again in January, soon after Trump took office, to assure him it would increase American car production. But that plant won’t reopen until 2027.

And despite Trump’s argument that his tariff threats are needed to “save” the US auto industry, US factories already produce the lion’s share of North American auto production.

According to data from S&P Global Mobility, there were 10.2 million cars built at US assembly plants last year, compared to 4 million at Mexican factories and 1.3 million in Canada. There are about 1 million workers at American factories producing cars, trucks and auto parts.

Boosted Investments

Announcement of Hyundai comes just before April 2, a date when potentially more extensive tariffs could be imposed on nations with significant trade surpluses, such as South Korea. Trump is promoting investments in American manufacturing, with similar commitments being made by Taiwan Semiconductor Manufacturing Company and Japan’s SoftBank.

Last month, Apple revealed plans to invest $500 billion to enhance its facilities, manufacturing capabilities, and projects throughout the United States over the next four years. This move seems aimed at helping the company sidestep new tariffs on imports from China, although some of these investment initiatives were likely already in progress.

In January, Oracle, OpenAI, and SoftBank announced a collaboration to establish a new company named Stargate, focused on expanding artificial intelligence infrastructure in the U.S. The trio plans to invest $500 billion into this venture over the coming years.

Newly elected presidents and those preparing to take office have frequently made joint announcements with companies regarding substantial investments in the U.S. to bolster domestic manufacturing. However, their success rates have been inconsistent.

In 2017, Trump and Foxconn unveiled plans for a $10 billion electronics factory in Wisconsin, which was projected to generate 13,000 jobs. Ultimately, the company scaled back most of its plans for the facility and the advanced products it was meant to produce. By 2021, Foxconn stated it would invest only $672 million in a revised agreement that would result in fewer than 1,500 jobs.