South Korea’s Hyundai has announced a record $21 billion investment in the U.S., aiming to shield itself from potential tariffs by the Trump administration. Hyundai plans to invest $9 billion by 2028, creating 14,000 full-time jobs to boost U.S. production capacity to 1.2 million vehicles annually. Additionally, $6 billion will be allocated to expand strategic partnerships with American companies in autonomous driving, robotics, artificial intelligence, and advanced air mobility. The investment also includes a new $5.8 billion Hyundai Steel plant in Louisiana, which will produce over 2.7 million metric tonnes of steel annually, creating more than 1,400 jobs. This plant is expected to supply steel to auto plants in Alabama and Georgia. Hyundai plans to hold an opening ceremony for its new $7.59 billion car and battery factory in Georgia on Wednesday. The carmaker has a factory in Alabama, while its affiliate Kia has a plant in Georgia. The two older plants can produce 700,000 vehicles a year, and the new Georgia plant will have a 300,000-vehicle production capacity when fully operational. President Trump expressed delight over Hyundai’s major $5.8 billion investment in American manufacturing, emphasizing the influx of money into the country. The announcement comes as Trump threatens to impose reciprocal tariffs on numerous countries on April 2, potentially targeting South Korea, which has a significant trade surplus with the U.S. Trump stated that this investment demonstrates the effectiveness of tariffs, hinting at more levies on cars likely to be announced this week. Trump has already introduced tariffs to increase protection for U.S. steel and aluminum producers, reimposing global tariffs of 25% on all imports of these metals and extending duties to hundreds of downstream products. Carmakers have been lobbying the White House to avoid massive new tariffs on imported autos and parts. General Motors CEO Mary Barra met with Trump earlier this month, discussing a potential $60 billion investment in the U.S. but raised concerns about tariff policy uncertainties. Louisiana Governor Jeff Landry traveled to South Korea in October to discuss the investment plan with Hyundai. Hyundai also plans to purchase $3 billion worth of liquefied natural gas produced in the U.S. Numerous companies have announced planned investments following Trump’s return to the White House, though some statements included previously announced plans. Hyundai had previously stated in 2022 that it would invest approximately $10 billion by 2025 in the U.S. — news from The Guardian
