Hyundai to invest $21 billion into U.S., dodge Trump's tariffs

Home > Business > Industry

Hyundai to invest $21 billion into U.S., dodge Trump's tariffs

Published: 25 Mar. 2025, 07:51 Updated: 25 Mar. 2025, 09:50

SARAH CHEA
[email protected]

Audio report: written by reporters, read by AI

Hyundai Motor Group Executive Chair Euisun Chung announces $21 billion investment in the United States as U.S. President Donald Trump, second from right, and Louisiana Gov. Jeff Landry, far right, stand in the Roosevelt Room at the White House in Washington on March 24. [AP/YONHAP]

Hyundai Motor Group announced a $21 billion U.S. investment at the White House on Monday, including a $6 billion steel factory in Louisiana, aiming to avoid potential reciprocal tariffs and automobile duties.

The move makes Hyundai the first Korean company explicitly mentioned by U.S. President Donald Trump as one that "will not have to pay any tariffs."

Hyundai Motor Group Executive Chair Euisun Chung said that $6 billion will go toward a Hyundai Steel factory in Louisiana, which will produce automotive steel and create 1,300 jobs.

Another $9 billion will be allocated to expanding Hyundai Motor’s U.S. production, including its soon-to-open $5.5 billion manufacturing plant in Georgia. Set to launch on March 26, the facility will have an initial annual capacity of 350,000 units, eventually increasing to 500,000 units, raising Hyundai's total U.S. production capacity to 1.2 million vehicles.

The remaining funds will support renewable energy initiatives, EV charging infrastructure and further research on robotics and autonomous driving in the United States.

"Hyundai will purchase $3 billion worth of U.S. LNG to support America’s energy industry and enhance our energy security," Chung said at the White House. "All of these efforts will accelerate the localization of our supply chain in the U.S., expand our operations and grow our American work force."

Trump welcomed the investment, calling it "a clear demonstration that tariffs very strongly work."

"Hyundai will be producing steel in America, making cars in America, and as a result, they'll not have to pay any tariffs," he said.

BY SARAH CHEA [[email protected]]