In a major boost to American manufacturing, Hyundai Motor Group is announcing a $20 billion investment across the United States, with a significant portion of that funding dedicated to a new $5.8 billion steel plant in Donaldsonville, Louisiana. President Donald Trump makes the announcement at the White House, alongside Hyundai Chairman Euisun Chung and Louisiana Governor Jeff Landry, calling it “clear proof” that his tariff policies are working.
The new Hyundai steel facility will be the company’s first in North America and is expected to produce over 2.7 million metric tons of steel annually. The steel produced will support Hyundai’s vehicle production in Alabama and Georgia, with a goal of localizing its supply chain and increasing efficiency. The plant is projected to create 1,300 direct jobs with an average salary of $95,000, and an additional 4,100 indirect jobs in the surrounding Capital Region.
President Trump credits his administration’s 25% tariffs on imported steel and aluminum as the driving force behind Hyundai’s decision. “This is what happens when you stand up for American workers. Companies return, jobs are created, and our economy grows,” Trump says during the announcement. The administration is positioning this investment as a key victory for its “America First” economic strategy, which focuses on reshoring industrial jobs and reducing reliance on foreign production.
Hyundai CEO José Muñoz emphasizes that the investment is not just a response to tariffs but also a reflection of the company’s long-term commitment to the U.S. market. In addition to the Louisiana steel plant, Hyundai plans to expand its existing operations in Alabama and Georgia, including opening a third automotive manufacturing facility in Georgia as part of the long-term strategy.
The Louisiana Economic Development (LED) department has offered Hyundai a $100 million performance-based incentive package, which includes infrastructure improvements and site development support. Hyundai will also partner with the Port of South Louisiana to build a deep-water dock, facilitating raw material imports and steel exports.
White House Press Secretary Karoline Leavitt calls the investment “transformative,” saying it will mean “more investments, more jobs, and more money in the pockets of hardworking Americans.” The announcement also comes just days after the White House reaffirmed its trade stance with additional secondary tariffs, underlining the administration’s commitment to driving industrial growth through aggressive economic policy.
The move is expected to have ripple effects across the U.S. automotive and steel sectors, and business analysts say it could encourage other global automakers and manufacturers to make similar moves amid ongoing tariff threats and market shifts.
Sources:
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