Hyundai, a South Korean conglomerate, announced a $21 billion investment in U.S. onshoring, including a $5.8 billion steel plant in Louisiana. This plant will employ over 1,400 people and produce next-generation steel for Hyundai’s U.S. auto plants to manufacture electric vehicles. The investment was revealed at the White House by President Donald Trump, Hyundai Chairman Euisun Chung, and Louisiana Gov. Jeff Landry. Other international companies like Taiwan Semiconductor Manufacturing Co. and SoftBank have also announced plans to invest in the U.S. to avoid tariffs.
Hyundai’s CEO, José Muñoz, mentioned that increasing localization is the best way to navigate tariffs. Hyundai is a top seller of electric vehicles in the U.S., competing with Tesla. The company already has automotive plants in Alabama and Georgia, and is opening a third plant in Georgia. South Korea, which has a trade deficit with the U.S., has been criticized by Trump for imposing high tariffs on American exports. However, South Korea has stated that their effective tariff rate on U.S. imports is only 0.79% due to a free trade pact between the two countries.
Overall, Hyundai’s investment in the U.S. reflects a larger trend of international companies seeking to onshore operations to avoid tariffs and trade tensions, while also strategically positioning themselves in key markets for the future.
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