South Korean carmaking giant Hyundai announced a $21 billion investment (£16.3 billion) in the United States just days before President Donald Trump plans to impose new tariffs on trading partners.
The plan includes a new $5.8 billion steel plant in southern Louisiana.
Hyundai also said it would expand production of American vehicles and invest billions of dollars in new technologies, including autonomous driving and artificial intelligence (AI).
“This investment is a clear demonstration that tariffs work very strongly,” Trump said at an event at the White House on Monday.
He added that tariffs on vehicle imports are likely to increase this week.
Hyundai said the new steelworks facility will produce more than 2.7 million tonnes of steel per year and create more than 1,400 jobs.
It is expected to make steel for Hyundai plants in Alabama and Georgia.
The announcement also included plans to invest $9 billion to boost the company’s US production to 1.2 million vehicles per year by 2028.
Hyundai also said it has allocated $6 billion to expand its partnership with US companies to develop technologies such as self-driving cars, robotics and AI.
On Wednesday, Hyundai Motor is scheduled to hold the opening ceremony for Georgia’s new $7.599 billion car and battery factory.
There is already a manufacturing facility in Alabama and its affiliates have a factory in Georgia.
When fully operational, the three plants have the ability to build 1 million vehicles a year, the company said.
Hyundai also said it would purchase $3 billion worth of liquefied natural gas (LNG) from the United States.
Since Trump returned to power, several companies have announced plans to make large investments in the United States.
However, some of the announcements were repetitions of previously published plans.
During the Biden administration, Hyundai said it would invest around $10 billion in new technology by 2025.
The latest announcement comes more than a week before April 2 when Trump said he would impose mutual tariffs on countries around the world.
A new round of import taxes could target Hyundai’s home country, South Korea, which has a massive trade surplus with the US.
Last month, Trump ordered a 25% import tax on all steel and aluminum that enters the United States.
He also expanded the taxation to include hundreds of metal products from nuts and bolts to drink cans.
In recent weeks, US automakers, including General Motors and Ford, have been asking the US president to exempt vehicle and vehicle parts from new tariffs.
