The Hyundai display at the New York International Auto Show on March 28, 2024.
Danielle DeVries | CNBC
South Korean conglomerate Hyundai will announce a $20 billion investment in U.S. onshoring that includes a $5 billion steel plant in Louisiana, according to people familiar with the plans.
The plant is set to hire roughly 1,500 employees and will produce next-generation steel that will be used by Hyundai’s two U.S. auto plants to manufacture electric vehicles. The investment is expected to be announced Monday at the White House by President Donald Trump, Hyundai Chairman Euisun Chung and Louisiana Gov. Jeff Landry.
Hyundai’s announcement comes as major international conglomerates are racing to dodge tariffs and avoid a trade war ahead of Trump’s April 2 tariff deadline. Taiwan’s TSMC and Japan’s Softbank are among the major foreign players that have visited the White House in the last two months to announce big U.S. onshoring plans.
Hyundai Motor CEO José Muñoz recently told Axios that the “the best way for [Hyundai] to navigate tariffs is to increase localization.”
The South Korean company is a top seller of electric vehicles in the U.S., competing directly with Tesla. It already has two major automotive plants in the U.S., one in Alabama and the other in Georgia. Hyundai on Monday is also expected to announce the opening of a third automotive plant, also in Georgia.
South Korea is also among the countries with which the U.S. carries a trade deficit. In early March, Trump singled out South Korea for applying high tariffs to U.S. exports, saying the Asian ally’s tariffs were four times higher than those of the United States.
Seoul has disputed that imbalance. As of 2024, South Korea’s effective tariff rate on U.S. imports stood at 0.79% as the two countries have a free trade pact, according to the South Korean government.
The White House didn’t immediately return request for comment on Monday’s announcement. Hyundai declined to comment.