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Hyundai to Invest $20 Billion in U.S. Manufacturing
Hyundai, the South Korean automotive giant, is poised to unveil a significant investment initiative focused on reshoring production to the United States. This initiative will reportedly amount to $20 billion and features plans for a $5 billion steel fabrication facility in Louisiana, as per sources familiar with the developments.
The new steel plant is expected to create approximately 1,500 jobs and will be integral in producing advanced steel materials specifically for electric vehicle manufacturing at Hyundai’s U.S. plants. This investment will likely be announced during a high-profile event at the White House, with key figures including President Donald Trump, Hyundai Chairman Euisun Chung, and Louisiana Governor Jeff Landry set to attend.
This announcement from Hyundai coincides with a broader trend among multinational corporations seeking to mitigate the risks associated with tariffs and trade tensions in the U.S. market. As the April 2 deadline for potential tariff increases looms, other international firms, including Taiwan’s TSMC and Japan’s Softbank, have also recently engaged with the U.S. administration to plan substantial onshoring efforts.
Hyundai Motor’s CEO, José Muñoz, emphasized in a recent interview that enhancing localization is a crucial strategy for navigating the complexities of U.S. tariffs. The company, which ranks among the leaders in electric vehicle sales in the United States, is in direct competition with major players like Tesla. Currently, Hyundai operates two major manufacturing facilities in the U.S.—one located in Alabama and another in Georgia. Furthermore, Hyundai is anticipated to reveal plans for a new automotive plant in Georgia during the same announcement.
On the larger trade front, South Korea is one of the countries with which the United States maintains a trade deficit. President Trump has specifically criticized South Korea’s tariffs on U.S. goods, claiming they are disproportionately higher compared to those imposed by the U.S. government. In contrast, South Korea has challenged this characterization, asserting that their effective tariff rate on imports from the U.S. is merely 0.79% due to the existing free trade agreement between the two nations.
The White House has yet to respond to inquiries regarding the anticipated announcement planned for Monday. Hyundai has also chosen not to provide comments at this time.
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