South Korean automotive giant Hyundai has announced a massive $21 billion investment in the United States, just days before President Donald Trump is expected to impose a new wave of tariffs on trading partners.

The ambitious plan includes a $5.8bn steel plant in Louisiana, alongside billions allocated to boost US vehicle production and cutting-edge technologies such as autonomous driving, robotics, and artificial intelligence (AI).

“This investment is a clear demonstration that tariffs very strongly work,” Trump declared at the White House event on Monday, signaling more import tariffs could be announced this week.

Hyundai's US Expansion Plan at a Glance:

• Total Investment: $21bn (approx. £16.3bn)
• New Steel Plant in Louisiana: $5.8bn investment, 1,400+ jobs
• Boost in US Vehicle Production: $9bn to increase production to 1.2 million vehicles per year by 2028
• Cutting-Edge Technology: $6bn for partnerships in self-driving vehicles, robotics, and AI
• New Georgia Car & Battery Factory: $7.59bn investment
• Liquefied Natural Gas (LNG) Purchases: $3bn worth from the US

Steel Plant in Louisiana: Hyundai’s Latest Power Move

At the heart of Hyundai’s expansion is a $5.8bn steel plant in Louisiana, set to produce more than 2.7 million metric tons of steel annually.

This facility will supply steel to Hyundai’s existing manufacturing plants in Alabama and Georgia, creating over 1,400 jobs.

With Trump's 25% import tax on steel and aluminum already in place, Hyundai’s decision to produce steel in the US could help the automaker sidestep tariffs while ensuring a steady supply of materials.

Accelerating US Vehicle Production

Hyundai is also investing $9bn to expand its US production capacity to 1.2 million vehicles a year by 2028, bolstering its competitive edge in the American automotive market.

The company's $7.59bn car and battery factory in Georgia is set to open this week. Combined with its existing Alabama plant and Kia’s Georgia facility, Hyundai is positioning itself as a dominant player in the US electric vehicle (EV) market.

When fully operational, the three plants will have the capacity to produce one million vehicles annually, including EVs.

Tech and Innovation: Driving the Future

Hyundai is allocating $6bn towards developing partnerships with US firms specializing in:

• Autonomous driving
• Robotics
• Artificial Intelligence (AI)

These investments are part of the company's broader vision to lead the shift toward smart mobility and electric transportation.

"We are committed to advancing technological innovation while strengthening our footprint in the US market," Hyundai said in a statement.

A Strategic Move Amid Trump’s Tariff Threats

The timing of Hyundai’s announcement is notable. President Trump has hinted at imposing new reciprocal tariffs on trading partners starting 2 April, which could potentially target South Korea, one of the US's major trade surplus countries.

The tariffs could affect Hyundai’s supply chain and export strategy. By expanding production and sourcing materials within the US, Hyundai may be shielding itself from future tariff costs.

Trump's Tariff Policy: A Double-Edged Sword?

President Trump's tariff policy aims to boost domestic manufacturing by encouraging foreign companies to invest in the US. Hyundai's expansion seems to support Trump's claims that “tariffs work.”

However, some analysts argue that:

• Higher Production Costs: Domestic steel prices may remain higher due to tariffs.
• Trade Tensions: Reciprocal tariffs could strain relations with key trading partners, including South Korea.
• Impact on US Automakers: General Motors and Ford have urged the administration to exempt vehicle imports from tariffs to avoid increasing prices for consumers.

Hyundai’s Investment Under Biden vs. Trump

This isn’t Hyundai’s first major US investment. During the Biden administration, Hyundai announced a $10bn investment in new technology by 2025.

However, the latest $21bn announcement under Trump doubles down on Hyundai's US presence, with a stronger focus on:

• Domestic steel production
• Electric vehicles (EVs)
• Cutting-edge technology partnerships



What’s Next?

With Trump set to announce another round of tariffs, including on vehicle imports, Hyundai's strategic expansion could help the automaker avoid significant costs while capitalizing on the growing US automotive market.

However, trade tensions remain a concern. Will other global automakers follow Hyundai’s lead? Or will retaliatory tariffs from affected countries escalate trade disputes?