Hyundai of South Korea has announced a $21 billion investment in the United States
Hyundai, a South Korean giant, announced Monday an approximately $21 billion investment in U.S. onshoring, including a $5.8 billion steel facility in Louisiana.
The plant will employ around 1,400 people and create next-generation steel for Hyundai’s two auto facilities in the United States, which will build electric automobiles. The investment was announced Monday at the White House by President Donald Trump, Hyundai Chairman Euisun Chung, and Louisiana Governor Jeff Landry.
Hyundai’s declaration comes as large foreign companies race to avoid tariffs and a trade war ahead of President Trump’s April 2 deadline. Taiwan Semiconductor Manufacturing Co. and Japan’s SoftBank are among the main international businesses who have visited the White House in the previous two months to announce significant US onshoring initiatives.
According to Hyundai Motor CEO José Muñoz, increasing localization is the most effective approach for the company to deal with tariffs.
The South Korean business is a leading vendor of electric automobiles in the US, directly competing with Tesla. It already operates two significant automobile plants in the United States, one in Alabama and the other in Georgia. On Monday, Hyundai also announced the opening of a third automobile facility in Georgia.
Seoul has contested the disparity. According to the South Korean government, South Korea’s effective tariff rate on US imports will be 0.79% in 2024 due to a free trade agreement between the two countries.
