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South Korea’s Hyundai has said it will make a record $21bn (£16bn) investment in the US, as it attempts to protect itself from the threat of tariffs from Donald Trump.
Hyundai plans to invest $9bn by 2028, creating 14,000 full-time jobs to boost US production capacity to 1.2m vehicles and $6bn to expand strategic partnerships with American companies in autonomous driving, robotics, artificial intelligence, and advanced air mobility, the company said.
The investment also includes a new $5.8bn Hyundai Steel plant in Louisiana that will produce more than 2.7m metric tonnes of steel annually, creating more than 1,400 jobs. The steel plant is expected to supply steel to auto plants in Alabama and Georgia.
Hyundai plans to hold an opening ceremony for its new $7.59bn car and battery factory in Georgia on Wednesday. The carmaker has a factory in Alabama, while its affiliate Kia has a plant in Georgia. The two older plants can produce 700,000 vehicles a year and the new Georgia plant will have a 300,000-vehicle production capacity when fully operational.
Trump said: “We’re delighted to report that Hyundai is announcing a major $5.8bn investment in American manufacturing.
“Money is pouring in and we want to keep it that way.”
Trump has threatened to impose reciprocal tariffs on numerous countries on 2 April, potentially targeting South Korea which has a large trade surplus with the US.
“This investment is a clear demonstration that tariffs very strongly work,” Trump said on Monday, adding that more levies on cars were likely to be announced this week.
The US president has already introduced tariffs to increase protection for US steel and aluminium producers. He reimposed global tariffs of 25% on all imports of the metals and extended the duties to hundreds of downstream products made from the metals, from nuts and bolts to bulldozer blades and soda cans.
Carmakers have been heavily lobbying the White House to not impose massive new tariffs on imported autos and parts. The General Motors chief executive, Mary Barra, met Trump earlier this month and told him the carmaker wanted to invest $60bn in the US but raised concerns about uncertainty over tariff policies.
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The Louisiana governor, Jeff Landry, had travelled to South Korea in October and met Hyundai to discuss the investment plan.
The South Korean carmaker also said it would buy $3bn of liquefied natural gas produced in the US.
Numerous companies have announced planned investments after Trump’s return to the White House, though some of those statements have included previously announced plans.
Hyundai in 2022 said it would invest about $10bn during 2025 in the US.