Washington — South Korean auto giant Hyundai has announced a major new investment in the United States, including a $5.8 billion steel plant in Louisiana that will create 1,300 new jobs. The announcement was made on Monday during a White House event attended by President Donald Trump and Hyundai Executive Chairman Euisun Chung.
This move is part of Hyundai’s long-term strategy to expand its presence in the U.S. and strengthen the automotive supply chain by making more components domestically.
Hyundai’s First Steel Plant in America
Hyundai Steel, which is part of the Hyundai Group, will build a modern electric arc furnace steel mill in Louisiana. The plant is expected to produce 2.7 million tons of steel every year, though the company has not yet revealed the exact location in the state.
This will be Hyundai’s first steel plant in the U.S., and it will help support the company’s goal of manufacturing more cars and parts locally. According to Hyundai, this investment also ensures a more secure and self-reliant supply chain for its American operations.
Avoiding Tariffs by Building in America
President Trump praised Hyundai’s decision, saying:
“Hyundai will be producing steel in America and making its cars in America, and as a result, they’ll not have to pay any tariffs.”
The announcement comes after repeated warnings from Trump that companies could face tariffs if they don’t move manufacturing jobs to the U.S. Tariffs, which are taxes on imported goods, have been used by the administration to push companies to bring their production back to American soil.
Experts, however, have warned that tariffs can hurt American consumers, as they often lead to higher prices for goods and services.
A $6 Billion Commitment to U.S. Innovation
Apart from the steel plant, Hyundai also announced an additional $6 billion investment in partnerships with U.S. companies. This will include projects related to:
- Self-driving cars
- Robotics
- Artificial intelligence (AI)
These investments aim to help Hyundai keep up with the fast-changing global auto industry while also boosting local job creation and technological innovation in the U.S.
Other Companies Following Suit
Hyundai isn’t the only company responding to pressure to invest more in the U.S. Earlier this year, Apple announced a $500 billion investment, including a new AI server manufacturing plant in Houston, Texas. Tech giant Oracle has also revealed expansion plans to increase its U.S. presence.
President Trump said these announcements prove that tariffs are working, calling Hyundai’s decision a “clear demonstration” of their effectiveness.
Hyundai’s decision to build a $5.8 billion steel plant and invest billions more in advanced technology partnerships shows the company’s strong commitment to the U.S. economy.
By producing both steel and cars in America, Hyundai avoids heavy tariffs while also supporting local jobs and innovation. As global businesses adjust to U.S. trade policies, such major investments are expected to continue shaping the country’s industrial and tech landscape.