Hyundai Motor, a South Korean conglomerate known for its automobiles, will invest $21 billion to expand US manufacturing, which President Trump said was evidence that his tariff policies are creating jobs.
The steel producer said its investments by 2028 would employ 1,300 people at its Louisiana steel plant and include $6 billion in other projects to supply parts and materials to the Hyundai plant.
The company will also spend $9 billion to expand production of Hyundai, Kia and origin vehicles in the US. The remaining money will be used for projects that include expanding the supply of renewable energy, building more electric vehicle chargers, and conducting research on robotics and autonomous driving.
Trump spoke at the White House at an event that includes Louisiana Gov. Jeff Landry and modern executive chair Ewisn Chong. “This investment is a clear demonstration that tariffs work very strongly.”
Trump has threatened to impose new tariffs on a wide range of foreign goods, including cars, and by committing to invest more in the US, Hyundai could help South Korea avoid tariffs, or at least be subject to a lower obligation than other countries.
Hyundai has already invested heavily in the US. Last year, the company began production of electric vehicles at a factory near Savannah, Georgia. On Wednesday, Hyundai is scheduled to hold an event to showcase the complex.
In addition to SK ON, a Korean battery manufacturer, Hyundai is investing another $5 billion to produce electric vehicle batteries near Atlanta.
Chong said Trump gave credit to Georgia’s investments and started in 2019 when the president visited Seoul for his first term. “We are truly proud to stand with you and build a future together,” Chong said.
The Georgia Hyundai factory also benefited from subsidies passed by Democrats during the Biden administration, but its support was not mentioned in the White House Monday.
Hyundai also manufactures vehicles in Montgomery, Alabama. Kia is building a car in West Point, Georgia, southwest of Atlanta.
The factory provides Hyundai with immunity from tariffs imposed and threatened by the Trump administration on steel and cars. US factories can give them a competitive advantage over rivals such as Ford Motor and General Motors, which import many electric vehicles from Mexico, by reducing costs from Hyundai’s tariffs. Trump is threatening to impose a 25% tariff on Canadian and Mexican products next month.
“If you’re making products in the US, there’s no tariffs,” Trump said.
