Washington: South Korean conglomerate Hyundai Motor Group unveiled plans to invest US$21 billion in the United States by 2028, as U.S. President Donald Trump intensifies tariff strategies to bolster domestic manufacturing. The announcement was made by Hyundai's Executive Chair Euisun Chung alongside President Trump and Louisiana Governor Jeff Landry.

According to Yonhap News Agency, the comprehensive investment plan includes $8.6 billion for the automotive sector, $6.1 billion for the steel industry, component parts, and logistics, and $6.3 billion for future industries and energy. "Today, I am pleased to announce an additional $21 billion in new investment over the next four years - our largest U.S. investment ever," Chung stated at the White House.

Hyundai plans to open a new $8 billion automotive plant in Georgia, expected to increase U.S. vehicle production to over 1 million units annually. This facility, which will create more than 8,500 American jobs, was initiated following Chung's meeting with Trump in Seoul in 2019. Additionally, Hyundai will invest in a new steel facility in Louisiana, creating 1,300 jobs, to bolster the U.S. automotive supply chain.

The conglomerate also aims to purchase $3 billion worth of U.S. liquefied natural gas to support energy sectors in both America and South Korea. Trump emphasized that Hyundai's investment underscores the effectiveness of his tariff policy, describing it as a "clear" indication of success.

Hyundai's automotive investment seeks to build a capacity for producing 1.2 million cars annually, increasing the manufacturing capability of its soon-to-be-opened Metaplant America in Georgia to 500,000 vehicles. The planned steel plant in Louisiana will produce 2.7 million metric tons of steel per year, aligning with efforts to mitigate uncertainties from U.S. tariffs.

Furthermore, Hyundai intends to collaborate with U.S. enterprises on advanced technologies such as autonomous driving, robotics, and artificial intelligence. The company plans to accelerate projects through its U.S. subsidiaries, including Boston Dynamics and Motional.

This investment makes Hyundai the first South Korean firm to announce such a large-scale plan amidst Trump's tariff threats. The White House highlighted Hyundai's move to "localize production in the U.S." as a testament to the administration's manufacturing agenda.

The Trump administration's "reciprocal" tariff plans aim to match tariffs imposed by other countries on U.S. exports, with South Korean officials striving to minimize potential impacts on their economy. Trump's recent claims about South Korea's tariffs have been countered by Seoul, citing their free trade agreement with the U.S.