Hyundai Motor pledges $21 billion US investment to counter auto tariffs

Hyundai Motor Group Chairman Chung Eui-sun announced a sweeping $21 billion investment plan in the United States during a joint press conference with U.S. President Donald Trump at the White House on Tuesday. The investment, spanning from 2025 to 2028, is seen as a strategic move to mitigate the impact of auto tariffs set to take effect on April 2.

“We’re delighted to report that Hyundai is announcing a $21 billion investment in the United States over the next four years,” Chung said. “This is the largest commitment we've made since entering the U.S. market. At the heart of this plan is a $6 billion investment to strengthen the American supply chain—from steel and parts to final vehicle assembly.” The total investment includes $9 billion earmarked for expanding U.S. vehicle production, $6 billion to fortify domestic supply chains for steel and auto components, and another $6 billion allocated to technology innovation and energy development.

President Trump praised the automaker, calling Hyundai “a great company” and touting the announcement as “a clear demonstration that tariffs very strongly work.” “As a result, they will not have to pay any tariffs," President Trump said. "There are no tariffs if you make your product in America.” Chung became the first South Korean business leader to meet with President Trump and announce a large-scale investment at the White House since the start of Trump’s second term.

The announcement comes just days before the Trump administration's new mutual tariffs on foreign-made automobiles are scheduled to go into effect. Hyundai’s plan aligns with Washington’s push to revitalize the U.S. manufacturing base and reinforce domestic supply chains, especially in critical sectors like the auto industry. In 2024, Hyundai and its affiliate Kia Motors sold 1,708,293 vehicles in the U.S., accounting for 24% of the group’s total global sales, making the U.S. Hyundai Motor Group's most important market.

As part of the initiative, Hyundai Steel will build a new plant in Louisiana with an annual capacity of 2.7 million tonnes. The facility will supply steel to Hyundai’s production facilities in Alabama and Georgia, enabling the company to establish a vertically integrated ecosystem in the U.S. that stretches from raw materials to finished vehicles. The group also plans to expand annual U.S. vehicle production to 1.2 million units.


Jae-Hyeng Kim monami@donga.com