Washington: South Korean conglomerate Hyundai Motor Group has revealed a substantial investment plan of US$21 billion in the United States through 2028. The announcement comes amidst U.S. President Donald Trump's efforts to bolster domestic manufacturing through increased tariff pressure.
According to Yonhap News Agency, Hyundai's Executive Chair Euisun Chung, alongside President Trump and Louisiana Governor Jeff Landry, disclosed the details of the investment at the White House. The multi-faceted plan allocates $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 sectors.
Chung expressed enthusiasm about Hyundai Steel's significant investment in a new facility in Louisiana, which is projected to create 1,300 jobs and strengthen the U.S. automotive supply chain. Additionally, he announced the upcoming inauguration of an $8 billion automotive plant in Georgia, aimed at producing over 1 million vehicles annually and creating more than 8,500 jobs.
The conglomerate will also purchase $3 billion in U.S. liquefied natural gas to bolster the energy sector while enhancing South Korea's energy security. This initiative aligns with Hyundai's broader strategy to expand its cooperation with U.S. companies in advanced technologies such as autonomous driving and artificial intelligence.
President Trump highlighted Hyundai's investment as evidence of the success of his tariff policy, which he claims encourages foreign companies to localize production in the U.S. This move, as per the White House, underscores the Trump administration's commitment to positioning America as a global manufacturing hub.
The new automotive investments will increase Hyundai's manufacturing capacity in the U.S., particularly at the soon-to-be-opened Hyundai Motor Group Metaplant America in Georgia, which aims to produce 500,000 vehicles annually. Meanwhile, the planned steel plant in Louisiana will produce 2.7 million metric tons of steel yearly, supporting Hyundai's efforts to mitigate the impact of U.S. tariffs.
Hyundai's announcement marks a significant development as the first large-scale investment plan by a South Korean firm in response to Trump's tariff threats. The initiative raises hopes of reducing tariff pressures on South Korea, which is actively seeking to avoid or minimize the impact of new U.S. tariffs on its economy.
While President Trump has criticized South Korea for having higher average tariffs compared to the U.S., South Korean officials argue that tariffs under the bilateral free trade agreement between the two countries are significantly lower. The ongoing diplomatic efforts aim to address these trade tensions and safeguard South Korea's economic interests.