SEOUL, March 25 (AJP) - Hyundai Motor Group announced on Tuesday that it will invest $21 billion in the United States over the next four years, significantly expanding its American footprint as it seeks to align with the Trump administration’s industrial and trade policies.
The pledge, made by Hyundai Motor Group Chairman Chung Eui-sun during a joint appearance with President Donald Trump at the White House, brings the South Korean conglomerate’s total U.S. investment to $41.5 billion. It marks the first major commitment by a South Korean firm since Trump began his second term.
The investment will support a broad range of initiatives, including an expansion of the Metaplant America’s production capacity in Georgia from 300,000 to 500,000 vehicles annually.
Hyundai also plans to construct an electric arc furnace steel mill in Louisiana capable of producing 2.7 million tons of steel each year. Additional funds will go toward partnerships with American firms in artificial intelligence and robotics, as well as investments in energy infrastructure.
“Hyundai will be producing steel in America — and its cars,” Trump said during the announcement. “As a result, they will not have to pay any tariffs.”
His remarks come just days before the administration is expected to unveil a new framework for country-specific reciprocal tariffs on April 2. The comments have fueled speculation that companies making sizable investments in the United States could receive exemptions from future trade penalties.
The White House has repeatedly held up Hyundai as a model for foreign firms responding to U.S. trade policy.
In recent months, it has cited the company four times as an example of how tariff threats can drive domestic investment.
Hyundai’s announcement also dovetails with the administration’s efforts to revitalize American manufacturing, particularly in sectors like steel. Earlier this year, Trump blocked the proposed acquisition of U.S. Steel by Japan’s Nippon Steel, citing national security concerns.
Industry analysts say Hyundai’s move reflects a broader strategic calculation, as businesses navigate an evolving trade landscape. Speaking at the White House, Trump reiterated his administration’s stance, saying “Flexibility is an important word” when it comes to tariff exceptions.
The president has previously granted exemptions to Mexico and Canada at the urging of the U.S. automotive industry, suggesting similar accommodations may be extended to firms with substantial domestic operations.
Hyundai, which first entered the American market in 1986, has invested $20.5 billion in the United States to date. The new $21 billion pledge represents a more-than-doubling of its cumulative U.S. investment.
reporter
Candice Kim
candicekim1121@ajupress.com
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