Trump Announces Hyundai’s $21 Billion Investment in Louisiana

‘This investment is a clear demonstration that tariffs very strongly work,’ the president says.

New Hyundai cars are displayed on the sales lot of a dealership in San Leandro, Calif., on May 30, 2023. Justin Sullivan/Getty Images

South Korean-based Hyundai announced a $20 billion investment in the United States, joining a growing list of foreign companies investing in the world’s largest economy.

Hyundai Executive Chairman Chung Eui-sun, appearing alongside President Donald Trump and Louisiana Gov. Jeff Landry, unveiled the onshoring plan at the White House.

The investment will include a $5.8 billion steel plant in Louisiana. Hyundai said the new facility will hire about 1,400 employees and manufacture next-generation steel used by its two factories to produce electric vehicles.

Chung called this the company’s largest U.S. investment ever.

“All of these efforts will accelerate the localization of our supply chain in the U.S. to expand our operations and grow our American workforce,” Chung said. “With your leadership, Mr. President, Hyundai Motor Group is proud to be a strong partner in America’s industrial future.”

The South Korean automaker will also enhance its auto manufacturing in Georgia and invest in advanced artificial intelligence (AI) technology companies.

Trump cited his tariffs as one of the chief factors for the latest foreign investment.

“This investment is a clear demonstration that tariffs very strongly work, and I hope other things also, but the tariffs are bringing them in at levels that have not been witnessed,” the president said.

Landry, speaking on Fox News before the meeting, said that projects are returning to the United States because the president is “basically opening up America to fair trade.”

“The reciprocal tariffs, in my opinion, are absolutely genius,” he said in the interview.

Hyundai’s announcement precedes Trump’s April 2 reciprocal tariffs, which will affect nations with sizable trade surpluses, such as South Korea.

Last year, the United States registered a $66 billion trade deficit with South Korea, up 29 percent from 2023. The last time the United States reported a trade surplus with the Asian economy was in 1997.

Financial markets were ebullient during the March 24 trading session on media reports that the administration would narrow its planned reciprocal tariffs. The White House refrained from confirming the reports, telling The Epoch Times that the president may or may not have sectoral tariffs on April 2.

“No final decisions have been made yet on sectoral tariffs being tacked onto reciprocal for [the] April 2 timeline,” a White House official said.

Trump told reporters that he might extend breaks to U.S. trading partners.

“We may take less than what they’re charging because they’ve charged us so much, I don’t think they could take it,” he said. “In other words, they’ve charged us so much that I’m embarrassed to charge them what they’ve charged.”

US Investments Reach $3 Trillion

Companies, including automakers, are mulling over plans to bolster domestic car production to avoid tariffs.

Stellantis—which owns the Chrysler, Dodge, Jeep, and Ram brands—reiterated the company’s efforts to increase U.S. car manufacturing by reopening a shuttered Illinois plant in 2027.

Volvo might shift production of some of its models to the United States because of tariffs, CEO Jim Rowans told Reuters.

Rowans stated that if tariffs on exports of automobiles from Europe rise to 25 percent, then it will be far more difficult to make a profit manufacturing cars there.

Still, the automaker has plenty of capacity at U.S. assembly plants to support the potential transition.

“We have space, paint shops, the buildings, all that’s there,” Rowans said. “We just need to make a final decision on which models and which platforms that we would move to the USA.”

Honda is also considering producing its next-generation Civic hybrid in Indiana instead of Mexico to avoid possible tariffs.

Trump has attempted to facilitate the reshoring and onshoring trend by imposing tariffs.

The White House recently implemented 25 percent tariffs on all steel and aluminum imports. Additionally, the president’s levies on automobiles from Asia and Europe are scheduled to go into effect in April.

Meanwhile, various corporations and foreign governments have pledged approximately $3 trillion of investment in the U.S. economy.

Apple confirmed last month that it will invest $500 billion over four years to increase facilities, boost manufacturing, and initiate projects.

Nvidia and Taiwan Semiconductor Manufacturing Company vowed $100 billion.

A trio of tech giants—OpenAI, Oracle, and Japan’s SoftBank—announced the “Stargate Project” in January, a $100 billion investment in U.S. AI data centers.

The United Arab Emirates and Saudi Arabia pledged $1.4 trillion and $600 billion, respectively.

Most recently, health care giant Johnson & Johnson confirmed a $55 billion investment in domestic manufacturing.

Pharmaceutical titans Merck and Eli Lilly also announced $1 billion in new manufacturing facilities.

Reuters contributed to this report.