The Hyundai display at the New York International Auto Show on March 28, 2024.
Danielle Devries | CNBC
The South Korean conglomerate Hyundai will announce an investment of $ 20 billion in US -American onshoring, which includes a steel mill of 5 billion US dollars in Louisiana, according to the people familiar with plans.
The work will hire around 1,500 employees and produce steel of the next generation, which are used by the two US Auto facilities from Hyundai to manufacture electric vehicles. The investment is expected to be announced on Monday in the White House of President Donald Trump, the chairman of Hyundai, Euisun Chung and the governor of Louisiana, Jeff Landry.
Hyundai's announcement is made that large international conglomerate against tariffs and avoid a trade war before Trump's tariff period from Trump on April 2. Taiwan Semiconductor Manufacturing Co. and Japan's soft bank are among the great foreign actors who have visited the White House in the past two months to announce large US onhoring plans.
José Muñoz, CEO from Hyundai Motor [Hyundai] Navigating tariffs means increasing the localization. “
The South Korean company is a top seller of electric vehicles in the USA and compete directly Tesla. It already has two large automotive plants in the USA, one in Alabama and the other in Georgia. Hyundai will also announce the opening of a third automotive system in Georgia on Monday.
South Korea is also one of the countries with which the United States wear a trade deficit. At the beginning of March, Trump South Korea awarded high tariffs to US exports and stated that the Asian allies' tariffs were four times higher than that of the United States.
Seoul denied this imbalance. From 2024, the effective tariff rate for South Korea for US imports was 0.79%, since according to the South Korean government, the two countries have a free trade pact.
The White House did not return a request for a comment on Monday. Hyundai refused to comment.
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