South Korean automaker Hyundai has unveiled plans for a $20 billion investment in U.S. manufacturing, including the construction of its first steel plant in the country. The announcement, made at the White House on March 24, 2025, featured Hyundai Chairman Euisun Chung, President Donald Trump, and Louisiana Governor Jeff Landry.
The $5.8 billion steel facility in Louisiana will produce 2.7 million metric tons of steel annually and create over 1,400 jobs, supplying Hyundai’s auto plants in Alabama and Georgia. Chung emphasized that this marks the company’s largest-ever investment in the United States.
Economic Impact and Tariffs
During the event, President Trump praised Hyundai’s investment, attributing it to his economic policies and tariff strategies. The administration has imposed 25% tariffs on steel and aluminum imports, along with new levies on foreign cars set to take effect next month.
“This investment is proof that tariffs work,” Trump stated.
Chung revealed that discussions about the new plant began in 2019 during a meeting with Trump in Seoul. He noted that the project coinciding with Trump’s second term makes the announcement even more significant.
Shifts in the Auto Industry
The investment aligns with broader shifts in the auto industry, as manufacturers respond to U.S. trade policies. Other companies, such as Stellantis, have made commitments to increase U.S. production. However, reopening and expanding factories remains a long-term process.
Despite Trump’s push for more domestic production, the U.S. already leads North American auto manufacturing, with 10.2 million vehicles produced last year, compared to 4 million in Mexico and 1.3 million in Canada, according to S&P Global Mobility.
Growing Foreign Investments in the U.S.
Hyundai’s move comes as several global companies ramp up investments in U.S. manufacturing:
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Apple recently announced a $500 billion investment in U.S. facilities over the next four years.
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Taiwan Semiconductor Manufacturing Company (TSMC) and Japan’s SoftBank have also committed to major projects.
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Oracle, OpenAI, and SoftBank are collaborating on Stargate, a $500 billion AI infrastructure initiative.
While such investments are often announced alongside new administrations, their long-term success varies. For example, in 2017, Trump and Foxconn promised a $10 billion electronics plant in Wisconsin, expected to create 13,000 jobs. However, the company later scaled back its investment to $672 million, with job estimates dropping below 1,500.
Despite the uncertainties, Hyundai’s latest expansion signals a significant shift in U.S. auto and steel production, reinforcing America’s role in global manufacturing.
