Hyundai Motor Group has announced a significant investment of $21 billion in expanding its manufacturing footprint in the United States, which includes a $5.8 billion steel plant to be established in Louisiana. This initiative, revealed in a ceremony alongside President Donald Trump, signifies Hyundai's commitment to bolster its production capacity in the face of existing tariffs on imported steel and cars.

The new steel facility, projected to produce over 2.7 million metric tons of steel annually, is expected to create more than 1,400 jobs. This plant will supply steel to Hyundai manufacturing plants located in Alabama and Georgia, signaling a strategic move towards a self-reliant industrial base in the U.S. economy, according to The Hill.

Trump touted the investment as evidence that tariff policies are effective in attracting foreign firms to bring manufacturing jobs back to America. “This investment is a clear demonstration that tariffs very strongly work,” he stated at the White House event, as reported by The New York Times.

Hyundai, which has also promised to enhance its capacity for producing electric vehicles, aims to raise its U.S. production of cars to 1.2 million vehicles per year by 2028. In addition, the automotive giant plans an investment of $6 billion into collaboration with American companies focused on advanced technologies such as robotics and artificial intelligence.

The announcement follows a trend where multiple companies, including global tech giants like Apple, are committing billions to U.S. operations, likely influenced by ongoing tariff discussions. As industries prepare for new tariffs set to commence on April 2, the urgency for local production has intensified.

In light of potential tariffs that may disproportionately affect South Korea, this investment marks Hyundai's proactive approach. Notably, the steel plant will be Hyundai's first of its kind in the United States, as the company navigates its financial commitments while aiming to alleviate its tariff burdens.

Hyundai's steel output, coupled with its automotive investments, will not only enhance the domestic supply chain but potentially provide a competitive edge over rivals who rely on imported materials, emphasizing the economic impact of such strategic investments.

Hyundai's plan was celebrated by local officials including Louisiana Governor Jeff Landry, who expressed enthusiasm about the job creation and economic growth stemming from this substantial commitment, a sentiment echoed throughout discussions of U.S.-based manufacturing initiatives.

For more details, you can read the full report from BBC.