Hyundai Bets Big on US Amid Renewed Trade Tensions
South Korea’s Hyundai Motor Group has unveiled a record $21 billion investment in the United States, signalling a strategic pivot to deepen its American footprint at a time of renewed uncertainty over trade tariffs. The announcement follows the return of Donald Trump to the White House, whose protectionist trade policies have stirred unease among foreign manufacturers.
We’re excited to share this $21B investment in the U.S. that will expand U.S. production to 1.2 million vehicles annually across HMG brands, strengthen local supply chains, and create over 100,000 new job opportunities by 2028!
More information: ➡️ https://t.co/xdGLZc70mm https://t.co/Xcr43eDjPc— Hyundai USA (@Hyundai) March 24, 2025
The investment spans several sectors—automotive, technology, steel, and energy—and aims to bolster both job creation and supply chain resilience within the US. The largest portion, $9 billion, will go towards scaling Hyundai’s vehicle production capacity, expected to reach 1.2 million units annually by 2028. This expansion is projected to generate 14,000 full-time jobs.
Focus on Electric Mobility and AI Integration
In a significant step towards future mobility, Hyundai will direct $6 billion into partnerships with US-based firms working in autonomous driving, robotics, artificial intelligence, and next-generation air mobility. These collaborations are expected to position Hyundai at the forefront of the technological transformation underway in the global auto sector.
Complementing this investment, Hyundai has confirmed a new $5.8 billion steel plant in Louisiana, which will manufacture 2.7 million metric tonnes of steel per year. The plant is intended to serve Hyundai’s auto manufacturing operations in Alabama and Georgia and will create an additional 1,400 jobs.
A formal inauguration is planned this week for Hyundai’s $7.59 billion electric vehicle and battery manufacturing facility in Georgia. This facility joins the company’s existing Alabama plant and an affiliate Kia plant in Georgia, both of which currently produce a combined 700,000 vehicles annually. Once operational, the new plant will add 300,000 more units to Hyundai’s annual output in the US.
Tariffs Loom as Automakers Weigh Strategies
The announcement comes amid mounting concern over potential reciprocal tariffs from the Trump administration. The US president has warned of new levies targeting countries with significant trade surpluses, including South Korea. Trump praised Hyundai’s investment, linking it to the effectiveness of his tariff policy and hinting at more automotive import duties to be declared soon.
Auto manufacturers across the industry are wary of the potential economic impact. While some firms, including General Motors, have expressed interest in large-scale US investments, they have also flagged the risks of unpredictable trade barriers. In recent engagements, auto executives have urged the administration to provide clarity on tariff policies to enable long-term planning.
Energy and Economic Diplomacy Also in Play
Beyond the automotive and steel sectors, Hyundai has committed to purchasing $3 billion worth of liquefied natural gas from the US, reinforcing energy trade ties between the two nations. The announcement also follows diplomatic engagements, including a visit by the Louisiana governor to South Korea last year, aimed at facilitating such investments.
While Hyundai’s $21 billion figure includes previously announced plans—such as a 2022 pledge to invest $10 billion by 2025—it represents the company’s most comprehensive strategy to date in the US. As the auto industry braces for evolving geopolitical pressures, Hyundai’s decision underscores a growing trend: building locally to stay globally relevant.
Also see:
Trump Announces “Reciprocal Tariff” Plan, Targets India and Other Nations
Tesla Signs Mumbai Showroom Lease, Marks Entry into Indian Market
EU Unveils €800 Billion Plan to Strengthen Defence
—————————————————————
It would mean the world to us if you follow us on Twitter, Instagram and Facebook
