Hyundai is set to make a significant financial commitment to the United States, with a planned $20 billion investment in on-shoring activities. This initiative includes constructing a $5 billion steel plant in Louisiana. The White House has confirmed that this announcement will be made by President Donald Trump, Hyundai Chairman Euisun Chung, and Louisiana Governor Jeff Landry.
White House Press Secretary Karoline Leavitt shared on social media, “More investments, more jobs, and more money in the pockets of hardworking Americans – all thanks to President Trump’s economic policies.” The news of Hyundai's investment was initially reported by CNBC.
President Trump has previously implemented 25% tariffs on steel and aluminum imports, and additional tariffs on vehicles from Asia and Europe are expected to be introduced soon. The goal is to bolster car production in the U.S. However, this is a complex issue.
For instance, Stellantis, which includes brands like Jeep, Ram, Dodge, and Chrysler, has agreed to reopen a closed plant in Illinois as part of negotiations with the United Auto Workers to end a 2023 strike. Although reassurances were made to President Trump regarding increased American car production, the plant's reopening is not expected until 2027.
Despite Trump's stance that such tariffs are essential to protect the U.S. auto industry, data from S&P Global Mobility indicates that American factories already account for a substantial portion of North American vehicle production. Last year, U.S. plants produced 10.2 million vehicles, compared to 4 million in Mexico and 1.3 million in Canada, with approximately 1 million workers employed in U.S. factories manufacturing cars, trucks, and auto parts.
Growing U.S. Manufacturing Presence
The announcement from Hyundai comes as the United States prepares for potential new tariffs on April 2, targeting countries with significant trade surpluses, including South Korea. President Trump is actively promoting domestic manufacturing investments, as seen with recent pledges from companies like Taiwan Semiconductor Manufacturing Company and Japan’s SoftBank.
In the previous month, Apple revealed plans to invest $500 billion over the next four years to expand facilities and projects across the United States. This move appears to be strategically aimed at circumventing impending tariffs on Chinese imports, though some investments may have been pre-planned.
Additionally, Oracle, OpenAI, and SoftBank announced their collaboration to establish Stargate, a firm focused on developing artificial intelligence infrastructure in the U.S. Together, they intend to invest $500 billion in this initiative in the forthcoming years.
While many new presidents and presidents-elect have made joint investment announcements to boost American manufacturing, the outcomes have been varied. In 2017, President Trump and Foxconn declared a $10 billion electronics factory project in Wisconsin, which was expected to generate 13,000 jobs. However, the project was substantially reduced, and by 2021, Foxconn committed to only $672 million in a revised plan, resulting in fewer than 1,500 jobs.
