South Korean company Hyundai is planning a major investment in the United States, announcing the opening of a $5 billion steel plant in Louisiana. The news was announced on March 24, according to CNBC, citing sources close to the company.

Plans and Impact of the Investment

The plant, which will create 1,500 jobs, will specialize in the production of next-generation steel. The steel will be used to meet the needs of Hyundai’s two American automakers specializing in the production of electric vehicles.

Political Dimensions and Market Response

The project is expected to be officially announced by President Donald Trump, along with Hyundai Chairman Yisun Chung and Louisiana Governor Jeff Landry. The move comes amid a worsening trade relationship and the imposition of tariffs, which are prompting multinational corporations to seek ways to avoid tariff restrictions.

Impact on International Business

Other major international companies, such as Taiwan Semiconductor Manufacturing Co and Japan’s SoftBank, are also actively considering options for opening new production facilities in the United States. This is indicative of a general trend of avoiding tariffs due to their impact on international trade.

Hyundai’s development in the US market

Hyundai is already one of the leaders in electric vehicle sales in the US, competing with Tesla. The company currently has two significant automotive plants in Alabama and Georgia. The announcement of a third plant in Georgia reinforces its strategic intention to expand production in the United States.

Trade relations and political aspects

The United States has a trade deficit with South Korea, prompting the Trump administration to impose tariffs on Korean exports. Supported by government data showing that South Korea’s tariff rate on US imports is 0.79%, the free trade agreement continues to shape the terms of trade between the two countries.

This investment initiative by Hyundai underscores its commitment to collaboration with American partners and its strategic desire to avoid trade barriers that are becoming a challenge for international business.