South Korean automotive giant Hyundai has revealed plans to invest $21 billion (£16.3 billion) in the United States, just days before President Donald Trump is expected to introduce a new wave of tariffs on global trading partners.
The investment package includes a $5.8 billion steel plant to be built in Louisiana, which will produce over 2.7 million metric tons of steel annually and create more than 1,400 jobs. The steel will supply Hyundai’s existing vehicle production facilities in Alabama and Georgia.
Speaking at a White House event on Monday, President Trump praised the announcement, stating, “This investment is a clear demonstration that tariffs very strongly work.” He added that more tariffs on vehicle imports are likely to be unveiled later this week.
Hyundai’s broader strategy includes $9 billion aimed at increasing U.S. vehicle production to 1.2 million units annually by 2028. An additional $6 billion will be used to deepen partnerships with American firms to develop advanced technologies such as autonomous vehicles, robotics, and artificial intelligence.
The company is also set to inaugurate a $7.59 billion car and battery plant in Georgia on Wednesday. With this new facility, alongside its Alabama plant and affiliate Kia’s Georgia factory, Hyundai expects to reach a combined production capacity of one million vehicles annually in the U.S.
In a further boost to U.S. trade, Hyundai said it will purchase $3 billion worth of liquefied natural gas (LNG) from American suppliers.
Since Trump’s return to office, several corporations have rolled out major U.S. investment plans—though some reflect previously announced initiatives. Under President Biden, Hyundai had already pledged $10 billion toward new technology investments by 2025.
This latest announcement comes just over a week before Trump’s April 2 deadline for introducing new reciprocal tariffs, which could affect countries like South Korea that run significant trade surpluses with the U.S. Last month, Trump imposed a 25% tariff on all imported steel and aluminum, later expanding the scope to cover a broad range of metal products.
Amid these escalating trade tensions, U.S. automakers including General Motors and Ford have urged the administration to exempt vehicles and parts from further tariff hikes.
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