Hyundai Motor Company has confirmed plans to invest $20 billion in expanding its manufacturing operations in the United States, according to a White House official. Part of this investment from the South Korean automaker will be dedicated to constructing a next-generation steel plant, which will contribute to the operations of two U.S. facilities and create approximately 1,500 jobs. The remaining funds will be allocated to furthering Hyundai’s manufacturing presence in the country.
The automaker’s efforts align with a broader movement under the Trump administration, which has implemented tariffs as a strategy to encourage companies to increase their American manufacturing operations and decrease their dependency on foreign production.
Vice President JD Vance emphasized the administration’s objective by stating on social media that companies investing in U.S. job creation will benefit from reduced regulations and taxes, while those building outside the U.S. would not receive similar support.
Hyundai’s announcement follows recent news from other major corporations. GE Aerospace has committed nearly $1 billion to enhance U.S. manufacturing, focusing on improving the production and innovation necessary for future flight technologies. This investment is aimed at boosting quality, safety, and delivery of engines, ultimately benefiting over two dozen communities across 16 states and creating around 5,000 new jobs in manufacturing and engineering.
In February, Eli Lilly declared an additional $27 billion investment to enhance domestic drug production, bringing its total U.S. manufacturing investment to over $50 billion since 2020. Similarly, Apple announced plans to spend $500 billion over the next five years, which includes building a new AI server manufacturing facility near Houston, expanding its Advanced Manufacturing Fund, and establishing an Apple Manufacturing Academy in Detroit. This initiative includes creating 20,000 new jobs in various tech sectors.
Further, Taiwan Semiconductor Manufacturing Company (TSMC) and CMA CGM have pledged substantial investments in U.S. production facilities and logistics, totaling $100 billion and $20 billion, respectively. Other companies, including Softbank, DAMAC, and Meta, have also committed significant U.S. investments under the Trump administration.
Nissan CEO Makoto Uchida has indicated that Trump’s tariffs might prompt the company to consider shifting some production out of Mexico.
The administration has promoted these initiatives as part of a mission to position the United States as a leading manufacturing leader. Economist Michael Szanto sees reshoring manufacturing as beneficial but warns it will require considerable time and investment. He notes that advanced facilities like chip foundries take years to complete and are expensive, and current labor shortages could present challenges. Szanto does, however, view the U.S.’s abundant energy resources as an advantage and anticipates automation and robotics advancements will help address workforce deficits.
