Hyundai display on New York International Auto Show on March 28, 2024.
Danielle Devries CNBC
According to people familiar with plans, the South Korean Hyundai conglomerate will announce an investment of $ 20 billion in the USA, which includes a $ 5 billion steel factory in Louisiana.
The plant is to employ around 1,500 employees and will produce a new generation steel, which will be used by two American Hyundai car power plants for the production of electric vehicles. The investment will be announced on Monday in the White House by President Donald Trump, president of Hyundai, Euisun Chung and GoV. Jeff Landry.
Hyundai's announcement appears when the main international conglomerates race with the tariff ajar and avoid trade war before Trump's tariff term on April 2. TSMC and Japan Softbank in Taiwat belong to the main foreign players who have visited the White House over the past two months to announce large nonning plans in the USA.
José Muñoz José Muñoz Hyundai Motor Axios said recently that “the best way (hyundai) to move tariffs is to increase location.”
The southern Korean company is a bestseller of electric vehicles in the United States, competing directly with Tesla. It already has two main automotive plants in the USA, one in Alabama and the other in Georgia. Hyundai is also expected to announce the opening of the third automotive plant on Monday, also in Georgia.
South Korea is also among the countries where the US carries a commercial deficit. At the beginning of March Trump distinguished South Korea for the use of high tariffs for US exports, saying that the Asian tariffs of the ally were four times higher than in the United States.
Seul questioned this imbalance. According to the South Korean government, in 2024, the effective tariff rate of South Korea was 0.79%, because both countries have a free trade pact.
The White House did not immediately ask for a comment in the Monday advertisement. Hyundai refused to comment.