(SeongJoon Cho/Bloomberg News)
President Donald Trump will tout plans by Hyundai Motor Co. to invest $20 billion in the U.S., as the South Korean automaker moves to boost production on American soil and avoid his tariff threats, according to a person familiar with the matter.
The investments will be highlighted at a White House event on March 24 with Trump and Republican Louisiana Gov. Jeff Landry, the person said, speaking on condition of anonymity.
Some of the investment will go toward building a mill in Louisiana to produce steel for electric vehicles made in the U.S. The plant is expected to employ about 1,500 workers, according to the person familiar. Plans for Hyundai to build a so-called electric arc furnace in the U.S. have been widely discussed in the domestic steel market since the beginning of the year.
Hyundai is the latest foreign company to spotlight plans to ramp up production in the U.S. as Trump escalates a trade war aimed at forcing manufacturers to create more American jobs. The president has already put in place levies on steel and aluminum and is poised to announce even more sweeping import taxes on April 2. On that date, the administration is expected to unveil reciprocal tariffs that will hit other nations with levies equal to the barriers they impose on U.S. goods.
TRUMP EFFECT: Hyundai will announce a $20 billion investment in the U.S. later today — including $5.8 billion for a steel plant in Louisiana. pic.twitter.com/5p24wg3gBq
— Rapid Response 47 (@RapidResponse47) March 24, 2025
Trump officials have publicly acknowledged in recent days the list of target countries may not be universal, but it is still unclear which nations they will target. South Korea is one of the nations Trump cites as a trade abuser.
The 25% steel and aluminum tariffs incentivize foreign steelmakers to build inside American borders are expected to give a short-term profit boost to domestic producers, but there is widespread worry that weak demand, ongoing inflation and continued high borrowing costs will act as massive headwinds to the industry.
The president has also pledged to impose sectoral tariffs on key industries, including autos, semiconductor chips and pharmaceutical drugs, on April 2, but those plans remain unclear and are not set to be launched at the same time as the reciprocal tariffs, according to officials.
The Korea Economic Daily in January reported that Hyundai planned to build a multimillion-dollar steel mill in Louisiana to supply its U.S. Hyundai and Kia vehicle assembly plants. The plans for Hyundai to announce the $20 billion investment were reported earlier March 24 by CNBC.
Trump’s tariff push — a broad bid to reshape global trade flows — has rattled investors and raised worries that the moves may tip the U.S. economy into a downturn. Trump at times has reversed course or suspended import taxes, fueling uncertainty for business owners and investors.
Earlier this month he offered a reprieve for auto companies from newly imposed tariffs on Mexico and Canada, delaying those levies for any vehicles and automobile parts covered by the North American trade agreement he negotiated in his first term.
That came after the heads of Detroit’s Big Three met with administration officials to push for a carveout. The auto industry is particularly vulnerable to Trump’s tariffs against Mexico and Canada, with the industry’s supply chains deeply integrated across the continent.
