Washington: South Korean conglomerate Hyundai Motor Group announced it will invest US$21 billion in the United States through 2028, amidst growing tariff pressures from U.S. President Donald Trump aimed at boosting domestic manufacturing.

According to Yonhap News Agency, the announcement was made by Hyundai's Executive Chair Euisun Chung at the White House, alongside President Trump and Louisiana Governor Jeff Landry. The investment plan allocates $8.6 billion to the automotive sector, $6.1 billion to the steel industry, component parts, and logistics, and $6.3 billion to future industries and energy. This makes Hyundai the first South Korean company to announce such a large-scale investment in response to President Trump's tariff policies.

The White House has emphasized Hyundai's intention to "localize production in the U.S.," highlighting this move as part of the Trump administration's broader strategy to position the United States as a "global superpower in manufacturing." Hyundai's extensive investment is sparking discussions about its potential to alleviate South Korea's tariff pressures under the current U.S. administration.

The Trump administration is planning to implement "reciprocal" tariffs country-by-country, aiming to align them with tariffs levied on U.S. exports by other nations. These new tariffs will be customized based on trading partners' tariff and non-tariff barriers, along with other factors like exchange rates.

Amidst these developments, South Korean officials are intensifying diplomatic efforts to mitigate the impact of new U.S. tariffs on their economy, which is Asia's fourth largest. President Trump has expressed a negative outlook on South Korea as a trading partner, citing that South Korea's average tariff is allegedly four times higher than that of the U.S. However, Seoul refuted this claim, stating that under the bilateral free trade agreement with the U.S., the average tariff stands at less than 1 percent.

South Korea's average tariff on its most-favored nations (MFNs) is approximately 13.4 percent, compared to the U.S.'s 3.3 percent on its MFNs. Nevertheless, this rate does not apply to countries with free trade agreements with Korea.