Trump Hails Hyundai’s US Expansion as Vindicating Tariffs

(Bloomberg) — President Donald Trump celebrated plans by Hyundai Motor Co. to mount a significant expansion in the US, casting it as a vindication of his administration’s use of tariffs to pressure foreign manufacturers to create American jobs.Most Read from Bloomberg

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“We’re delighted to report that Hyundai is announcing a major $5.8 billion investment in American manufacturing,” Trump said Monday at a White House event alongside Republican Louisiana Governor Jeff Landry and executives from the South Korean automaker.

Hyundai will be building a new steel plant in Louisiana, which Trump said would produce more than 2.7 million metric tons of steel a year. “And then there’ll be major expansion after that,” he added.

“Money is pouring in and we want to keep it that way,” Trump said, calling the investment a “clear demonstration that tariffs very strongly work.”

Hyundai plans to spend about $21 billion in the US through 2028 to increase vehicle production and on other projects expected to create about 14,000 direct jobs, the company said in a statement, confirming an earlier report by Bloomberg News. The push includes $9 billion to boost factory output to about 1.2 million vehicles per year, plus another $12 billion on other initiatives including the new steel mill in Louisiana.

Hyundai Chairman Chung Euisun said the investment would strengthen the steel supply chain in the US and said the company would also purchase $3 billion of US liquefied natural gas.

“It’s deepening our partnership with the United States and reinforcing our shared vision for American industrial leadership,” he said.

Hyundai is the latest foreign company to spotlight plans to ramp up production in the US as Trump escalates a trade war aimed at forcing manufacturers to create more American jobs. The president has already put in place levies on steel and aluminum and is poised to announce even more sweeping import taxes on April 2. On that date, the administration is expected to unveil reciprocal tariffs that will hit other nations with levies equal to the barriers they impose on US goods.

Trump officials have publicly acknowledged in recent days the list of target countries may not be universal, but it is still unclear which nations they will target. South Korea is one of the nations Trump cites as a trade abuser.