Hyundai Motor, a South Korean conglomerate, will invest $21 billion to expand manufacturing in the US in what President Donald Trump said was proof that his tariff policies were creating jobs.
The company, which also produces steel, said the investment through 2028 would include $6 billion for a steel factory in Louisiana that would employ 1,300 people and for other projects to supply Hyundai factories with parts and materials. The company will also spend $9 billion to expand production of Hyundai, Kia and Genesis vehicles in the US.
Japan braces for blow
Before the election, Toyota Motor and other Japanese auto makers thought a second Trump administration could be good for them. But as Trump’s tariff agenda has taken shape, much of that optimism has turned to alarm.
With Japan’s economy already stifled by inflation, some economists estimate that if Trump’s automotive tariffs are implemented as threatened, they could wipe out 40 per cent of its potential economic growth this year.
Toyota made about 1 million of the 2.3 million cars it sold in the US last year outside of the country. Executives at Nissan and Honda have warned that Trump’s tariff plans would carve deeply into their earnings.
