Hyundai Motor Group has increased its US investment commitment to $26 billion (36 trillion won) through 2028, adding $5 billion to the package announced five months ago alongside President Donald Trump at the White House.
The South Korean conglomerate said the additional spending will target steel production, automotive manufacturing, and robotics as it seeks to shield operations from potential trade barriers. The expanded commitment represents “an additional USD 5 billion investment on the USD 21 billion allocation announced in March 2025.”
The timing underscores how foreign manufacturers continue adapting to Trump’s protectionist policies, which include 25% tariffs on steel and aluminum imports. Trump has already enacted 25% tariffs on steel and aluminum imports, as well as levies on cars from Asia and Europe set to go into effect next month.
However, much of Hyundai’s investment appears to repackage previously planned projects rather than entirely new commitments. Axios recently reported that Hyundai’s “headline-grabbing announcement of a $21 billion U.S. investment — most of which was already underway — was all Trump needed to show that his global tariff threats were working.”
The company’s strategy centers on a Louisiana steel mill capable of producing 2.7 million tons annually, designed to supply its Alabama and Georgia vehicle plants. Hyundai Steel, the Group’s steel affiliate, will construct an Electric Arc Furnace (EAF) steel mill in the state of Louisiana, capable of producing 2.7 million tons of steel annually.
Hyundai expects the overall program to create 25,000 direct jobs across automotive, steel, and technology sectors. The company operates two US automotive plants and recently opened its dedicated electric vehicle facility in Georgia, part of a broader push to localize production for models including the Ioniq 5.
The investment increase comes as South Korea faces scrutiny over trade imbalances with the US. 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.
While Hyundai frames the spending as supporting American industrial leadership, the moves largely reflect defensive positioning against trade restrictions rather than organic expansion plans.
