Hyundai to Invest $21 Billion in US in Bid to Avoid Trump’s Tariffs
Hyundai Motor, a South Korean conglomerate known for its cars, will invest $ 21 billion to expand production in the United States in what President Trump said was proof that his tariff policies were creating jobs.
The company, which also produces steel, said that the investment until 2028 would include $ 6 billion for a steel factory in Louisiana that would employ 1,300 people and for other projects to provide Hyundai factories with parts and materials.
The company will also spend $ 9 billion to expand the production of Hyundai, Kia and Genesis vehicles in the United States. The rest of the money will be used for projects that include the expansion of renewable energy supplies, the construction of more chargers for electric vehicles and the conduct of research on robots and autonomous driving.
“Money is pouring,” Trump said to the White House in an event that included governor Jeff Landry of Louisiana and Euisun Chung, executive president of Hyundai. “This investment is a clear demonstration that rates work strongly.”
Trump has threatened to impose new rates on a wide range of foreign goods, including cars, and promising to invest more in the United States, Hyundai can help South Korea avoid rates or at least be subject to lower duties compared to other countries.
Hyundai already has significant investments in the United States. Last year, the company began producing electric vehicles in a factory near Savannah, Georgia, which cost $ 7.6 billion for construction. Wednesday, Hyundai plans to host an event to show the complex.
Together with SK ON, a South Korean batteries manufacturer, Hyundai is investing other $ 5 billion to produce batteries for electric vehicles near Atlanta.
Chung gave credit to Mr. Trump for Georgia’s investments, saying that they were started when the president visited Soul in 2019 during his first term. “We are really proud to be with you and proud to build the future together,” Chung said.
The Hyundai factories in Georgia also benefited from the subsidies approved by the Democrats during the Biden administration, although this support was not mentioned in the White House on Monday.
Hyundai also produces vehicles in Montgomery, wing. Kia builds cars in West Point, Georgia, south -ogest of Atlanta.
The factories provide to Hyundai with a certain immunity from the rates that the Trump administration has imposed or threatened with steel and cars. By reducing the costs of Hyundai from rates, US factories could also give the company a competitive advantage over rivals such as Ford Motor and General Motors, which import many of their electric vehicles from Mexico. Trump threatened to impose rates of 25 % on products from Canada and Mexico next month.
“There are no rates if you make your product in America,” said Trump, who reiterated the plans to impose rates for cars imported in the days to come.
