Washington: South Korean conglomerate Hyundai Motor Group has announced plans to invest US$21 billion in the United States through 2028, as President Donald Trump intensifies tariff measures to bolster domestic manufacturing.
According to Yonhap News Agency, Hyundai's Executive Chair Euisun Chung, alongside President Trump and Louisiana Governor Jeff Landry, revealed the investment plan, which 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 industry sectors and energy.
Chung stated at the White House, "Today, I am pleased to announce an additional $21 billion in new investment over the next four years -- our largest U.S. investment ever. A key part of this commitment is our $6 billion investment to strengthen the U.S. supply chain (for) steel and parts for automobiles."
He highlighted Hyundai Steel's significant investment in Louisiana, which is expected to create 1,300 jobs and enhance the U.S. automotive supply chain. Additionally, Hyundai plans to inaugurate a new $8 billion automotive plant in Georgia, boosting U.S. vehicle production to over 1 million units annually and creating more than 8,500 jobs.
President Trump emphasized that Hyundai's decision to invest in the U.S. validates the effectiveness of his tariff policies, which encourage foreign firms to manufacture domestically. He remarked, "The tariffs are bringing them in at levels that have not been witnessed. Hyundai will be producing steel in America and making its cars in America."
Hyundai's announcement marks the first major investment from a South Korean firm amidst the current U.S. tariff climate. The White House has underscored this move as part of its strategy to position the U.S. as a "global superpower in manufacturing."
This development also raises hopes in South Korea that such investments could mitigate tariff pressures from the Trump administration, which plans to implement country-specific "reciprocal" tariffs. These tariffs will align with the trade barriers that U.S. exports face internationally.
Amidst diplomatic efforts by South Korea to minimize the impact of potential new tariffs, President Trump has suggested that South Korea imposes significantly higher tariffs than the U.S., a claim South Korean officials dispute under the bilateral free trade agreement.