South Korean conglomerate Hyundai announced on Monday a roughly $21 billion investment in US oversight, including Louisiana’s $5.8 billion steel mill.
The factory is expected to employ more than 1,400 people, and will produce next-generation steel that two Hyundai US automotive factories use to manufacture electric vehicles. The investment was announced at the White House on Monday by President Donald Trump, Hyundai Chairman Yuison Chong and Louisiana Governor Jeff Landry.
CNBC previously reported expected announcements and details of the investment.
Hyundai’s announcement comes as major international conglomerates dodge tariffs and compete to avoid a trade war ahead of Trump’s April 2nd tariff deadline. Taiwan Semiconductor Manufacturing Co. and Japan’s SoftBank are one of the leading foreign players who have visited the White House in the past two months and announced a massive US onshoring plan.
“The best way for (Hyundai) to navigate tariffs is to increase localization,” Hyundai Motor CEO José Muñoz recently told Axios.
The Korean company is the top seller of US electric vehicles and is directly competing Tesla. Already there are two major automotive factories in the US, one in Alabama and the other in Georgia. Hyundai also announced the opening of its third automotive factory in Georgia on Monday.
South Korea is one of the countries where the US has a trade deficit. In early March, Trump picked out South Korea because he applied high tariffs on US exports, saying that tariffs from Asian allies were four times higher than US tariffs.
Seoul challenged the imbalance. As of 2024, South Korea’s effective tariff rate on US imports was 0.79%, as the two countries had a free trade agreement.
