South Korean automaker Hyundai has unveiled a record-breaking $20 billion investment in U.S. manufacturing, including a $5 billion steel plant in Louisiana—its first-ever steel production facility in the country. The announcement was made Monday at the White House, where Hyundai Chairman Euisun Chung was joined by U.S. President Donald Trump and Louisiana Governor Jeff Landry.
The Louisiana plant, set to cost $5.8 billion, will produce over 2.7 million metric tonnes of steel annually. It is expected to create more than 1,400 jobs while supplying Hyundai’s automotive plants in Alabama and Georgia. Chairman Chung described the move as Hyundai’s largest investment in the U.S. to date.
Foreign Firms Ramp Up U.S. Investments Amid Tariff Concerns
Hyundai’s announcement comes as global corporations accelerate investments in the U.S., partly in response to Trump’s tariff policies. Taiwan Semiconductor Manufacturing Company (TSMC), Japan’s SoftBank, and Apple have all expanded their U.S. presence in recent months. Apple recently pledged $500 billion to strengthen manufacturing and infrastructure nationwide.
Trump: ‘Tariffs Very Strongly Work’
Speaking at the White House, Trump credited his trade policies for the investment, stating, “This investment is a clear demonstration that tariffs very strongly work.” His administration had previously imposed 25% tariffs on steel and aluminum imports and is set to introduce new levies on Asian and European car imports next month.
Hyundai Chairman Chung acknowledged Trump’s influence on the decision, revealing that discussions about the U.S. steel plant began in 2019 during a meeting in Seoul. He noted that the announcement coinciding with Trump’s second term made the occasion “even more special,” as reported by CNN.
‘More Investments, More Jobs, More Money’
White House Press Secretary Karoline Leavitt praised the investment on social media, posting, “More investments, more jobs, and more money in the pockets of hardworking Americans—all thanks to President Trump’s economic policies.”
While large investment pledges often accompany new presidential terms, their outcomes vary. For instance, Trump’s 2017 announcement of a $10 billion Foxconn plant in Wisconsin—expected to create 13,000 jobs—ultimately led to a much smaller $672 million investment, generating fewer than 1,500 jobs.
Despite Trump’s push to bolster U.S. auto manufacturing, American factories already dominate North American production. In 2023, U.S. assembly plants built 10.2 million vehicles, compared to 4 million in Mexico and 1.3 million in Canada.
With a new wave of tariffs set to take effect on April 2, more companies are likely to shift production to the U.S. to avoid trade penalties.
