By Charles Switzer
1:48am PDT, Mar 27, 2025
Trump Celebrates Hyundai's U.S. Expansion
During a White House event on Monday, March 24,
Bloomberg reported that President
Donald Trump praised Hyundai Motor Company's major new investment in American manufacturing, calling it proof that his administration's tariff policy is working.
"We're delighted to report that Hyundai is announcing a major $5.8 billion investment in American manufacturing," the president said, standing alongside Louisiana Governor
Jeff Landry and company executives.
The South Korean automaker will build a new steel facility in Louisiana, which Trump said will produce more than 2.7 million metric tons of steel annually. "And then there'll be major expansion after that," he observed. "Money is pouring in and we want to keep it that way," he said, referring to the announcement as a "clear demonstration that tariffs very strongly work."
Here are four key takeaways from Trump's investment claims.
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Hyundai's Long-Term Investment Strategy
In a statement, Hyundai confirmed it will invest approximately $21 billion in the U.S. by 2028, aiming to create around 14,000 direct jobs. This includes $9 billion to boost annual vehicle production to 1.2 million units, and $12 billion for other projects — including the new steel plant.
Hyundai Chairman Chung Euisun stated, "It's deepening our partnership with the United States and reinforcing our shared vision for American industrial leadership."
The automaker also plans to purchase $3 billion worth of U.S. liquefied natural gas as part of the initiative.
Tariffs, Trade Policy and Economic Impact
Hyundai's announcement follows a broader trend of foreign firms shifting production to the U.S. amid Donald Trump's aggressive trade policies. The administration has already imposed tariffs on steel and aluminum and is preparing to roll out further reciprocal levies on April 2.
"I may give a lot of countries breaks but it's reciprocal, but we might be even nicer than that," Trump said, hinting at exemptions for select nations.
He also repeated plans for more tariffs "having to do with automobiles, cars and having also to do a little bit with lumber down the road, lumber and chips."
These trade measures have caused concern in financial markets, with fears they could trigger an
economic slowdown despite short-term gains for domestic manufacturers.
Hyundai's Localization Efforts in the U.S.
Hyundai's expansion includes its new electric vehicle factory in Savannah, Georgia — first announced in 2022 — which is now being retooled to manufacture hybrid models amid cooling demand for EVs.
Hyundai and its partners, SK On Co. and LG Energy Solution Ltd., are also investing in two joint battery ventures to increase production capacity. The forthcoming steel mill is expected to create about 1,500 jobs, and according to
The Korea Economic Daily, it will serve Hyundai and Kia plants in the U.S.
The decision aligns with Hyundai CEO
Jose Munoz's previous statements about localizing production to shield the company from unpredictable policy changes.
Tariff Uncertainty and Industry Challenges
Despite enthusiasm over Hyundai's commitment, Donald Trump's broader tariff strategy continues to create unpredictability in the industrial sector. Earlier this month, the administration temporarily delayed auto-related tariffs on imports from Mexico and Canada following pressure from U.S. automakers.
"Tariff-related uncertainty" has become a major concern for industry analysts, with companies like Nucor Corp., Steel Dynamics Inc. and U.S. Steel warning of weak first-quarter earnings.
Trump's shifting stance on tariffs has left many investors unsure, as efforts to incentivize domestic production compete with fears of suppressed demand and rising costs.
