The U.S. economy keeps growing, and Hyundai will announce a major investment.

Hyundai Motor Group, the South Korean conglomerate, will announce a $20 billion investment in the United States, which includes a $5 billion steel plant in Louisiana, according to a U.S. official.

The news will be announced this Monday at a ceremony at the White House, where President Donald Trump, Hyundai's President, Euisun Chung, and Louisiana Governor, Jeff Landry, will be present.

In addition to the steel plant, the announcement is expected to include details about next-generation steel production that will be used in Hyundai's U.S. car factories for manufacturing electric vehicles. The plant in Louisiana will generate approximately 1,500 jobs.

Hyundai Steel, Hyundai's subsidiary, had previously indicated that it was considering the possibility of building a steel factory in the southeastern United States, although no definitive decisions had been made yet.

The company also expressed that an increase in U.S. tariffs would have a negative impact on the South Korean steel industry.

This move aligns with Trump's policies of imposing tariffs on steel and aluminum imports to protect domestic producers and counter the trade deficit.

Regarding the automotive industry, Hyundai also has significant plans. The South Korean company will hold an opening ceremony for its new car manufacturing plant in Georgia later this month.

Hyundai already has a factory in Alabama and its subsidiary Kia has a plant in Georgia. Additionally, Hyundai is expected to announce the opening of a third automotive plant in Georgia.

This investment announcement by Hyundai is part of a broader trend where large international conglomerates are seeking ways to avoid tariffs and prevent a trade war with the United States, especially before the April 2 deadline imposed by Trump.

Companies like Taiwan Semiconductor Manufacturing Co. and Japan's SoftBank have also visited the White House in recent months to announce investment plans in the United States.

José Muñoz, CEO of Hyundai Motor, recently commented that "the best way to navigate tariffs is to increase localization," referring to the strategy of local production to avoid additional tariffs.

Hyundai has established itself as one of the leading sellers of electric vehicles in the United States, competing directly with Tesla. With the new investments, the company will strengthen its presence in the U.S. market.

South Korea is one of the countries with which the United States has a trade deficit. In early March, Trump pointed to South Korea for applying high tariffs on U.S. exports, arguing that South Korean tariffs were four times higher than those of the United States.

However, Seoul has disputed this claim, stating that the effective tariff rate of South Korea on U.S. imports was 0.79% in 2024, due to a free trade agreement between the two countries.

In response to a request for comments on the investment announcement, the White House shared a social media message from Press Secretary Karoline Leavitt, which said: "More investments, more jobs, and more money in the pockets of American workers, all thanks to President Trump's economic policies."

This announcement underscores the Trump administration's strong focus on encouraging foreign investment and strengthening local production in the United States, reflecting a broader strategy to reduce the trade deficit and protect the national industry.