Hyundai plans to make a fresh $2 billion investment in the US, including a new Louisiana steel factory, becoming the latest major foreign company and moving more operations into the US to avoid looming tariffs.
The South Korean automaker is planning to build a $5.8 billion factory near Donaldsonville, with the new facility being set to create 5,500 direct and indirect jobs, CBS said.
President Trump announced plans at the White House at 2pm with Louisiana Gov. Jeff Landry, touting domestic manufacturing and the first Hyundai steel factory to move overseas, the White House confirmed with the Post.
The project will be part of a planned new $20 billion US investment for Hyundai. According to CNBC.
Asian automakers already have factories in Alabama and Georgia, but the steel factory was the first overseas steel facility, supplying steel to factories of companies in nearby states.
Trump announced 25% tariffs on steel and aluminum in February on all foreign-made metals, but said that those produced in the US would not be affected.
“I simplify tariffs, steel and aluminum so that everyone can understand exactly what it means. 25% without exceptions or exemptions,” Trump said in February.
“It's all countries. It's all countries, wherever you come from. If it's made in the United States, there's no tariffs,” he said.
Hyundai's announcement comes amid Trump's global steel tariff threat and his April 2 deadline for setting up other mutual tariffs, as well as incentives for foreign companies to move to the US.
Other foreign companies, including Japan's SoftBank and Taiwanese semiconductor manufacturers, recently announced major planned investments in the US to try to curry favors with the administration before tariffs begin.
South Korea is one of the top 10 countries with a trade deficit with the US that supports them. The Asian country will likely be targeted in the White House's global announcement on April 2, with the aim of returning and traveling the same tariffs that the American trading partners collect.
“April 2 will be America's liberation day. We've been torn apart by all the countries, friends and enemies of the world,” Trump said on Friday of upcoming tariff announcements.
Hyundai CEO Jose Munoz; Talk to Axios Before Trump came to power in January, he said the then-presidential election promised tariff policies encouraged the company to come to the United States.
“We have decided to invest a big time in America as our most important market,” Munoz said.
“So the best way to navigate tariffs is to increase localization.”
