Hyundai Shifts Manufacturing Stateside As Tariffs Threat Looms

Hyundai shocked many when it announced on March 24 it’s doubling down on manufacturing vehicles in the US. The Korean automaker says it’s committed to invest $21 billion into its manufacturing base in this country between 2025 and 2028 as the threat of tariffs of some foreign products looms from the Trump administration.

Gas prices have hit a four year low.

As part of this strategic move, Hyundai announced in a press release it plans to push US production capacity to 1.2 million vehicles a year through a $9 billion investment. That means more Hyundais, Kias, and Genesis will be rolling off production lines in this country, creating more jobs for Americans.

Another part of the plan involves Hyundai sinking $6 billion into sourcing vehicle components inside the US. That includes investing in domestic steel production instead of relying on countries like China for supplies. In fact, Hyundai Steel has plans to build an Electric Arc Furnace steel mill in Louisiana, which would be able to churn out 2.7 million tons of steel each year.

TRUMP EFFECT: Hyundai will announce a $20 billion investment in the U.S. later today — including $5.8 billion for a steel plant in Louisiana. pic.twitter.com/5p24wg3gBq

— Rapid Response 47 (@RapidResponse47) March 24, 2025

Hyundai is thinking beyond just cars as it looks to deepen its roots here in the US. The company is setting aside $6 billion for strategic partnerships to help develop advanced technologies. Among the initiatives revealed is working alongside Boston Dynamics to mass-produce robotics components, collaborating with NVIDIA for integrating advanced AI into future mobility products, and outfitting robotaxis for Waymo’s service fleet.

The automaker has also said it’s investing $6 billion into energy infrastructure projects in the US like Small Modular Reactor technology with the help of Construction Holtec and expanding infrastructure for the IONNA EV charging service.

While some are saying automakers can’t or won’t realign their manufacturing strategies as President Trump threatens reciprocal tariffs on countries which already levy big tariffs on US goods, it seems Hyundai is more than happy to dig deeper in this market and make things happen.

Image via Hyundai