**Louisiana**: Hyundai Motor Company plans to invest $20 billion in the US, including a $5.8 billion steel plant in Louisiana. This facility aims to create around 5,500 jobs and is a response to recent tariffs on foreign steel and aluminium imposed by President Trump.
Hyundai Motor Company has announced plans for a substantial investment of $20 billion in the United States, which includes the establishment of a new steel plant in Louisiana. The investment underscores the growing trend of foreign companies relocating operations to the U.S. in response to impending tariffs on imported goods.
The planned steel plant, estimated at $5.8 billion, will be located near Donaldsonville, Louisiana. This facility is expected to generate approximately 5,500 direct and indirect jobs for the region, as reported by CBS. The official announcement is scheduled for today at 2 p.m., where President Donald Trump, alongside Louisiana Governor Jeff Landry, will present the details at the White House. This steel plant marks a significant milestone, as it represents Hyundai’s first overseas steel facility, which is intended to supply steel to the company’s existing manufacturing operations in neighbouring states such as Alabama and Georgia.
Hyundai’s decision to invest in the U.S. comes on the heels of a 25% tariff imposed by President Trump on all foreign-made steel and aluminium introduced in February. During a speech at that time, Trump stated, “I’m simplifying our tariffs and steel and aluminum so that everyone can understand exactly what it means. It’s 25%, without exceptions or exemptions.” He clarified that metals produced in the U.S. would not be subject to these tariffs.
The announcement of Hyundai’s facility arrives amid a backdrop of heightened trade tensions, with Trump threatening additional tariffs and establishing an April 2 deadline for reciprocal tariffs against countries that impose tariffs on American products. The administration appears to be actively encouraging foreign companies to align their operations within the U.S. to navigate the new tariff landscape.
Other international corporations, including Japan’s Softbank and Taiwan Semiconductor Manufacturing Co., have made similar decisions to invest significantly in the U.S. market, seeking to establish favourable relations with the current administration before new tariffs are enforced.
South Korea, Hyundai’s home country, has been identified as one of the top ten countries in trade deficits with the U.S. and may face scrutiny during the White House’s impending tariff announcements. Trump remarked on the significance of these tariffs, stating, “April 2nd is going to be liberation day for America. We’ve been ripped off by every country in the world, friend and foe.”
Hyundai’s CEO, José Muñoz, had previously indicated that the tariff policies outlined by Trump incentivised the company’s decision to invest heavily in the U.S. market. Talking to Axios, Muñoz highlighted the firm’s strategic focus on localizing operations to mitigate the challenges posed by tariffs: “We decided to invest big time in America as the most important market. So the best way for us to navigate tariffs is to increase localization.”
Source: Noah Wire Services
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