Hyundai to Invest $20 Billion in U.S. Manufacturing Amid Tariff Changes

WASHINGTON, D.C. — South Korean automaker Hyundai announced plans on March 24, 2025, to invest $20 billion in the U.S., including the construction of a $5.8 billion steel plant in Louisiana. This investment comes as part of a broader strategy to expand American manufacturing and avoid looming tariffs.

During a White House event, President Donald Trump celebrated the announcement, describing it as a vindication of his administration’s tariff policies. “Money is pouring in, and we want to keep it that way,” said Trump, who also emphasized that the plant will generate over 1,400 jobs. This facility is particularly significant as it will be Hyundai’s first steel plant in North America, located near Donaldsonville, about 40 miles south of Baton Rouge.

Hyundai’s planned investment aims to bolster its operations in the United States, where it already has factories in Alabama and Georgia. The new steel plant will supply metal for Hyundai’s two U.S. auto plants, focusing on the production of electric vehicles. “They’ll be making their cars here in America,” Trump remarked.

Hyundai Motor Group Executive Chairman Euisun Chung reaffirmed the company’s commitment to supporting American industrial leadership. “We are really proud to stand with you and proud to build the future together,” Chung told Trump during the announcement.

The investment is part of Hyundai’s broader plan to inject $21 billion into U.S. manufacturing over the next four years, which is expected to create approximately 14,000 jobs across various initiatives. This includes $9 billion dedicated to increasing factory production to 1.2 million vehicles annually.

In his remarks, Trump stressed the impact of tariffs on foreign manufacturers, stating that companies producing in the U.S. would avoid these levies. “Hyundai will be producing steel in America and making its cars in America,” he said. “So, it’s something — that’s why so many people are coming.”

As the U.S. government prepares for reciprocal tariffs set to take effect on April 2, Trump has labeled this date as “Liberation Day.” It remains to be seen how these tariffs will reshape international trade and the implications for foreign companies like Hyundai.

Hyundai CEO José Muñoz previously recognized that the anticipated policy changes under Trump encouraged the company’s decision to invest heavily in the American market. “We decided to invest big time in America as the most important market,” Muñoz said.

Over the past few months, other foreign companies have also announced significant investments in the U.S. as they seek to align with the new tariff environment. Japan’s Softbank and Taiwan Semiconductor Manufacturing Co. are among the firms that have indicated planned expansions to the U.S. market.

Trump highlighted that there is a broader wave of companies returning to the U.S., suggesting that officials have identified around $4 trillion worth of potential movements. These actions are implicitly linked to the administration’s trade policies aimed at encouraging domestic manufacturing.

As details unfold, it is clear that Hyundai’s investment not only signals their expansion in the U.S. but also reflects ongoing changes in international trade dynamics driven by tariffs and economic policies.