March 24 (UPI) — South Korea’s Hyundai Motor Co. will reportedly announce Monday a $20 billion investment in a new American facilities to offset President Donald Trump’s tariffs and a looming trade war.
Hyundai is reportedly set to reveal the opening of its third U.S.-based automotive facility in Georgia and a new Louisiana steel plant that could hire some 1,500 workers to produce next-generation steel for Hyundai’s other manufacturing facilities in the United States, according to CBNC, Seeking Alpha and Teslarati.
It is expected that the White House will announce the deal with Trump, Hyundai Chairman Euisun Chung and Louisiana Gov. Jeff Landry.
The Trump administration is set to impose a 25% tariff by April 2 on vehicles imported from other nations.
“Unless the tariff or non-tariff barriers are equalized, or the U.S. has higher tariffs, the tariffs will go into effect,” U.S. Treasury Secretary Scott Bessent has sad.
Hyundai, which is South Korea’s largest automaker, is one of the top U.S. sellers of electric vehicles in direct competition with billionaire Elon Musk’s Tesla and already has two facilities in Montgomery, Ala., and near Savannah, Ga.
“We are looking forward to officially opening Hyundai Motor Group Metaplant America in Georgia [next week]” Hyundai’s President and CEO Jose Munoz said during a recent company shareholders meeting. “Our localization strategy in the important U.S. market will help mitigate the impact of any potential policy change.”
Hyundai aims to increase the sale of electric vehicles by 2030 to over 2 million units globally, with plans to invest at least $90 billion over the next 10 years to create 21 different EV and 14 other hybrid models, including its luxury brand Genesis and EV-specific models.
It came as other companies — like Taiwan Semiconductor Manufacturing Co. and Japan’s SoftBank — that have taken similar steps in recent months to fend off a Trump trade war that could spike prices for U.S. consumers for an undetermined period.
“The best way for [Hyundai] to navigate tariffs is to increase localization,” Munoz said.
