South Korea's Hyundai is preparing to announce a $20 billion investment in U.S. manufacturing, including a new $5 billion steel plant in Louisiana, according to people familiar with the plans. The announcement is expected Monday at the White House, with President Donald Trump, Hyundai Chairman Euisun Chung, and Louisiana Governor Jeff Landry slated to attend.
The Louisiana steel facility is expected to hire approximately 1,500 employees and will produce next-generation steel intended for Hyundai's two U.S. auto plants, which are key to the company's electric vehicle production strategy. Hyundai is also anticipated to announce the opening of a third automotive plant, to be located in Georgia.
Hyundai's decision comes as major multinational corporations move to expand U.S. operations amid growing trade tensions. Trump has set an April 2 deadline to impose tariffs on countries that apply duties to U.S. imports, prompting foreign firms such as Taiwan's TSMC and Japan's SoftBank to unveil new onshoring initiatives in recent months.
Hyundai Motor CEO José Muñoz recently told Axios that the best strategy for the company to navigate tariff concerns is to "increase localization."
The South Korean automaker is one of the leading electric vehicle sellers in the U.S., competing with Tesla. Its existing American manufacturing facilities include large plants in Alabama and Georgia.
Trump has repeatedly criticized South Korea's trade practices, specifically highlighting high tariffs on American goods. South Korea, however, disputes claims of an imbalance. According to the South Korean government, as of 2024, the country's effective tariff rate on U.S. imports stands at 0.79%, citing the existing U.S.-South Korea free trade agreement.
Hyundai and the White House declined to comment ahead of Monday's announcement.
In financial markets, Hyundai Motor and Kia shares rose sharply Monday on speculation that automobile tariffs may be exempted under Trump's new trade measures. At 2:05 p.m. KST, Hyundai Motor shares were trading at 214,000 won on the KOSPI market, up 4.39% from the previous session. Kia and Hyundai Mobis shares posted gains between 3% and 4%.
Samsung Securities researcher Lim Eun-young said, "Concerns over the tariff war have been particularly focused on the Korean automotive sector," adding that the prospect of tariff exemptions has fueled a strong recovery in Hyundai and Kia stocks.
Lim also noted that additional growth drivers, including Hyundai's collaboration with General Motors, Kia's upcoming Investor Day, and advancements in robotics technology, could further strengthen stock performance if trade concerns ease.
