The South Korean automaker Hyundai announced on Monday that it will be building a $5.8 billion steel plant in Louisiana, a move sparked by President Trump’s threats of tariffs.
Hyundai executive chairman Euisun Chung told reporters about the investment at a White House event on Monday alongside President Trump. Chung said the new plant is expected to bring 1,300 new jobs to the U.S. and serve “as the foundation for a more self-reliant and secure automotive supply chain in the U.S.”
Since returning to the White House in January, Trump has continued to threaten tariffs on companies that do not move manufacturing to the U.S. from overseas.
Hyundai now grows the list of companies that have announced they will be making domestic investments to move manufacturing projects to the U.S. Top tech companies like Apple and Oracle have made similar announcements. The iPhone maker announced a plan to invest $500 billion in the U.S. over the next four years.
Trump praised the move by Hyundai during the press conference, noting that it will be a first for the car maker.
“Hyundai will be producing steel in America and making its cars in America, and as a result, they’ll not have to pay any tariffs,” Trump said.
The steel mill will be built by Hyundai Steel, an affiliate of the company. The plan is to build an electric arc furnace steel mill with the capability of producing 2.7 million tons of steel per year, according to a press release.
It is not clear where in Louisiana the company plans to build the steel mill.
While no move has been made against South Korea, the Trump administration is still threatening to impose 25% tariffs on imports from Mexico and Canada starting on April 2. Other countries may also see tariffs from the president.
Trump said during the press conference on Monday that Hyundai’s decision to expand in the U.S. is a “clear demonstration that tariffs very strongly work.”