South Korean auto giant Hyundai has announced a sweeping investment plan in the United States, including a massive $5.8 billion steel plant in Louisiana and a $7.59 billion car and battery factory in Georgia.
The move underscores a growing shift among multinational companies recalibrating their operations under the weight of U.S. President Donald Trump’s aggressive tariff policies.
Hyundai Executive Chairman Euisun Chung revealed the investment during a White House event on Monday, standing alongside Trump.
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“This new facility will create 1,300 American jobs and serve as the foundation for a more self-reliant and secure automotive supply chain in the U.S.,” Chung said.
The Louisiana plant marks a critical expansion for Hyundai, which already has a strong manufacturing presence in the United States. The company operates an assembly plant in Alabama, while its affiliate Kia runs a production facility in Georgia. The two existing factories can produce 700,000 vehicles annually. Once the new Georgia plant becomes fully operational, it will add another 300,000 cars to the company’s U.S. manufacturing capacity.
Trump’s Tariffs: A Driving Force Behind Hyundai’s Move?
Hyundai’s latest investment makes it the newest major company to announce a multibillion-dollar commitment to the United States since Trump’s return to the presidency in January. The U.S. president has made clear that companies choosing to manufacture abroad could face punishing tariffs, while those investing in American factories will be rewarded with tariff exemptions.
Trump has repeatedly signaled his intention to impose reciprocal tariffs on countries with large trade surpluses with the United States. South Korea, a key U.S. trade partner, has found itself in Trump’s crosshairs, raising speculation that Hyundai’s investment is, at least in part, a strategic move to avoid being swept up in new trade penalties.
“Hyundai will be producing steel in America and making its cars in America, and as a result, they’ll not have to pay any tariffs,” Trump said Monday, touting the investment as evidence that his protectionist trade policies are working.
“Cars are coming to this country at levels never seen before. Money is pouring in. We want to keep it that way,” he added.
The president further hinted that more tariff measures targeting foreign automakers could be announced in the coming days.
Global Business Scrambles as U.S. Trade War Heats Up
Hyundai’s decision comes amid a broader wave of multinational firms redirecting their investments to the United States in response to Trump’s trade war rhetoric. Apple and Oracle are among the companies that have announced hundreds of billions of dollars in planned U.S. investments over the next four years.
Louisiana Governor Jeff Landry had traveled to South Korea in October to meet with Hyundai executives and discuss the steel plant investment. The project is expected to make Louisiana a key hub for Hyundai’s North American supply chain.
“Hyundai’s commitment shows that we are entering a new era of manufacturing in America,” Landry said in a statement. “This investment not only strengthens our auto sector but ensures that American workers are at the heart of global production.”
In addition to its manufacturing expansion, Hyundai has also pledged to purchase $3 billion worth of liquefied natural gas (LNG) from the United States, further aligning itself with the country’s energy sector.
The deal aligns with Trump’s broader push to boost American energy exports and reduce trade deficits. With South Korea being one of the largest importers of U.S. LNG, the agreement solidifies Hyundai’s relationship with American energy producers and serves as a buffer against potential trade restrictions.
Trump’s renewed trade war threats have put companies like Hyundai in a tough spot, forcing them to either move production to the U.S. or risk hefty penalties. While Hyundai’s latest investments may shield it from immediate tariff exposure, the broader uncertainty surrounding Trump’s trade policies means the auto industry remains on edge.
As the April 2 deadline for Trump’s reciprocal tariff announcements approaches, major automakers—including European and Japanese manufacturers—are bracing for the possibility of new levies. Industry analysts say Hyundai’s rapid expansion into the U.S. is a clear signal that companies are taking Trump’s threats seriously.