International
The South Korean company Hyundai has announced that it will make an investment of 21 billion dollars in the United States as it seeks to protect itself from the threat of tariffs from Donald Trump.
Mr. Trump threatened to impose tariffs on several countries on April 2, which could target South Korea, which has a large trade surplus with the United States.
On Monday, Mr. Trump stated, "This investment is a clear indication that tariffs are having a strong impact," adding that additional tariffs on imported vehicles are likely to be announced this week.
Hyundai plans to invest 9 billion dollars by 2028 by creating 14,000 full-time jobs to increase the production capacity of the United States to 1.2 million units and 6 billion dollars to expand strategic partnerships with American companies in autonomous driving, artificial intelligence, and advanced air mobility.
This investment also includes a new Hyundai Steel factory worth 5.8 billion dollars in Louisiana that will produce more than 2.7 million tons of steel per year and create more than 1,400 jobs. This steel plant is expected to supply steel to car manufacturing plants in Alabama and Georgia.
Hyundai will hold a groundbreaking ceremony for its new 7.59 billion dollar vehicle and battery manufacturing plant in Georgia on Wednesday. The automaker has factories in Alabama while its Kia subsidiary has a plant in Georgia. Both of these older plants can produce 700,000 vehicles each year, and the new Georgia facility will have a production capacity of 300,000 vehicles when fully operational.
Mr. Trump stated, "We are pleased to report that Hyundai is announcing a large investment of 5.8 billion dollars in its production in America."
"Money is flowing in, and we want to keep it here."
The President of the United States has already proposed tariffs to increase protection for American steel and aluminum manufacturers. He reinstated a general tariff of 25% on all imported metals and expanded duties to hundreds of product categories.Automakers have been strongly urging the White House not to impose large new tariffs on imported vehicles and parts. General Motors CEO Mary Barra met with Mr. Trump earlier this month and told him that the automaker wants to invest 60 billion dollars in the United States but raised concerns about uncertainty regarding tax policy.
Louisiana Governor Jeff Landry traveled to South Korea last October and met with Hyundai to discuss investment plans.
The South Korean automaker also mentioned that it will purchase 3 billion dollars worth of liquefied natural gas produced in the United States.
Several companies have announced investment plans following Mr. Trump's return to the White House, although some statements included plans that were previously announced.
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