Hyundai announces $21B investment in US to dodge Trump's tariffs
What's the story
Hyundai has announced a record-breaking $21 billion investment in US manufacturing, including plans to build a $5.8 billion steel plant in Louisiana.
The plant will be the company's first steel production site in the country and is expected to create over 1,400 jobs.
The announcement was made at the White House with President Donald Trump and Hyundai chairman Euisun Chung in attendance.
The move makes Hyundai the first Korean company that "will not have to pay any tariffs," per Trump.
Investment details
Louisiana plant to produce over 2.7M metric tons of steel
With an investment of $5.8 billion, the Louisiana plant is expected to produce more than 2.7 million metric tons of steel every year. This will be utilized in Hyundai's auto plants in Alabama and Georgia.
Chairman Chung has called this the company's largest US investment ever, highlighting its importance in Hyundai's expansion strategy in the country.
Trade policies
Trump's trade policies linked to Hyundai's investment
President Trump has attributed Hyundai's massive investment to his trade policies.
"This investment is a clear demonstration that tariffs very strongly work," he said.
"Hyundai will be producing steel in America, making cars in America, and as a result, they'll not have to pay any tariffs."
The statement comes as his administration had earlier imposed 25% tariffs on steel and aluminum imports, and proposed new taxes on Asian and European car imports scheduled to come into effect in April.
Plant discussions
Discussions about US steel plant began in 2019
Hyundai's chairman admitted that Trump's influence was behind their decision to invest in the US.
He said that talks about the steel plant started in 2019 during a meeting in Seoul.
Chung said that having this announcement coincide with Trump's second term made it "even more special."
This emphasizes the long-term strategic planning behind Hyundai's decision to expand its operations in the US.