Hyundai’s Big Bet: $21 Billion Investment Aims to Win Over U.S. Tariff Talks

Hyundai Motor Group Executive Chair Chung Euisun is flying to the United States to support the Korean government’s tariff negotiations with Washington, according to industry sources Wednesday.

Chung previously met with U.S. President Donald Trump when the Korean auto giant announced a $21 billion investment in the U.S. at the White House in March. This investment includes a new steel mill in Louisiana and an expansion of local production at its new Georgia manufacturing facility, Hyundai Motor Group Metaplant America.

Chung is expected to strengthen South Korea’s bargaining position as top officials in Seoul work to finalize a tariff agreement that could mitigate the impact on the country’s export-driven economy before the Friday deadline for trade talks, which Trump had previously warned about.

“This investment clearly demonstrates that tariffs are very effective,” Trump stated during the announcement. “Hyundai will be producing steel in America and manufacturing its cars in America. Consequently, they will not have to pay any tariffs.”

Despite this significant investment decision, Hyundai Motor and its sister company Kia have faced challenges due to the 25 percent tariffs imposed on all auto imports into the U.S. since April.

The Korean automotive conglomerate has invested over $20 billion since entering the U.S. market in 1986.

Hyundai Motor’s chief is the third South Korean business leader to visit the U.S. this week, following Samsung Electronics Chairman Lee Jae-yong and Hanwha Group Vice Chairman Kim Dong-kwan.