Yundai Announces $21 Billion U.S. Expansion Amid Looming Trump Tariffs

WASHINGTON, D.C. – South Korean automaker Hyundai has unveiled a massive $21 billion investment plan in the U.S., just days before President Donald Trump is set to impose new tariffs on foreign trade partners. The announcement, made at the White House on Monday, signals Hyundai’s strategic move to bolster its American manufacturing footprint and technological advancements amid shifting trade policies.

Major Investments in U.S. Manufacturing and Technology

Hyundai’s investment includes a new $5.8 billion steel plant in Louisiana, expected to produce over 2.7 million metric tons of steel annually and create more than 1,400 jobs. The facility will supply Hyundai’s automotive plants in Alabama and Georgia, strengthening the company’s supply chain within the U.S.

In addition to steel production, Hyundai is committing $9 billion to expand its American vehicle manufacturing capacity. By 2028, the company aims to produce 1.2 million vehicles per year in the U.S. The automaker is also investing $6 billion into advanced technologies, including artificial intelligence, robotics, and self-driving vehicles, through partnerships with U.S. firms.

New Factory and Energy Agreements

On Wednesday, Hyundai is set to hold an opening ceremony for its new $7.59 billion car and battery plant in Georgia, adding to its existing U.S. manufacturing presence. The company already operates an assembly plant in Alabama, while its subsidiary, Kia, has a production facility in Georgia. Once all three factories are fully operational, Hyundai’s annual U.S. production capacity is expected to surpass one million vehicles.

Further diversifying its investment, Hyundai announced a $3 billion agreement to purchase liquefied natural gas (LNG) from the U.S., reinforcing energy ties between the two nations.

Trump Applauds Hyundai’s Move as Tariffs Loom

During the White House event, President Trump praised Hyundai’s decision, stating, “This investment is a clear demonstration that tariffs very strongly work.” He reiterated that additional tariffs on vehicle imports could be announced later this week, raising concerns about potential trade tensions with South Korea, one of the countries maintaining a large trade surplus with the U.S.

Trump’s trade policies have drawn mixed reactions from the auto industry. While some companies have announced new U.S. investments since his return to office, industry leaders—including General Motors and Ford—have urged the administration to exempt auto imports from higher tariffs to avoid disruptions in global supply chains.

Hyundai’s Strategy Amid Shifting Trade Policies

Hyundai’s latest announcement follows its previous pledge under the Biden administration to invest $10 billion in U.S. technology by 2025. While the new expansion plan signals long-term commitment to the American market, it also reflects Hyundai’s strategic positioning as the U.S. government intensifies trade measures.

As the April 2 tariff deadline approaches, Hyundai’s move underscores the increasing pressure on global automakers to localize production and navigate the evolving U.S. trade landscape.