South Korea’s Hyundai has unveiled a massive $20 billion investment in US manufacturing, including a $5 billion steel plant in Louisiana, marking the company’s first steel production facility in the country. The announcement was made on Monday at the White House, alongside US President Donald Trump, Hyundai chairman Euisun Chung, and Louisiana governor Jeff Landry.
The $5.8 billion Louisiana plant, which will produce over 2.7 million metric tonnes of steel annually, is expected to create more than 1,400 jobs and supply steel to Hyundai’s auto plants in Alabama and Georgia.
Chairman Chung called it the auto giant’s largest US investment ever.
Hyundai’s announcement comes as more global firms ramp up US investments amid tariff concerns. Taiwan Semiconductor Manufacturing Company, Japan’s SoftBank, and Apple have all announced major expansion plans in the country. Apple recently pledged $500 billion to boost manufacturing and infrastructure across the US.
Trump: ‘Tariffs very strongly work’
Speaking at the White House, Trump linked the investment to his trade policies, saying, “This investment is a clear demonstration that tariffs very strongly work.” His administration had previously introduced 25% tariffs on steel and aluminium imports and planned new levies on Asian and European car imports, set to take effect next month.
Hyundai’s Euisun Chung acknowledged Trump’s role in the company’s decision, revealing that discussions about the US steel plant began in 2019 during a meeting in Seoul. He added that the announcement coinciding with Trump’s second term made the moment “even more special,” CNN reported.
‘More investments, more jobs, and more money’
White House press secretary Karoline Leavitt praised the development on social media, writing, “More investments, more jobs, and more money in the pockets of hardworking Americans – all thanks to President Trump’s economic policies.”
While such investment pledges are common during new presidential terms, their success varies. Trump’s 2017 announcement of a $10 billion Foxconn factory in Wisconsin, expected to create 13,000 jobs, ultimately resulted in a scaled-down investment of $672 million, producing fewer than 1,500 jobs.
Despite Trump’s push to “save” the US auto industry, American factories already produce the majority of North American auto production. In 2023, US assembly plants built 10.2 million vehicles, compared to 4 million in Mexico and 1.3 million in Canada.
With Trump’s next wave of tariffs set for 2 April, more companies are expected to shift production to the US to avoid trade penalties.
