Hyundai prepares for Trump’s tariffs with billion-dollar investment in the United States

Hyundai Motor Company is preparing for President Trump’s tariffs by investing billions in the United States, particularly in its new car factory in Georgia.

“We are looking forward to officially opening Hyundai Motor Group Metaplant America (HMGMA) in Georgia (next week). Our localization strategy in the important U.S. market will help mitigate the impact of any potential policy change,” said Hyundai’s President and CEO Jose Muñoz, during the company’s shareholders’ meeting.

By April 2, 2025, U.S. President Donald Trump intends to impose a 25% tariff on vehicles imported from other countries.

“Unless the tariff or non-tariff barriers are equalized, or the U.S. has higher tariffs, the tariffs will go into effect,” commented Treasury Secretary Scott Bessent, speaking about Trump’s tariffs in general–not just those imposed on imported vehicles.

Hyundai’s strategy to alleviate potential risks from Trump’s tariffs is to invest more in the United States so it can increase local production. The Hyundai Motor Group Metaplant American (HMGMA) is essential to the South Korean company’s plans.

“Hyundai Motor and its partners are investing $12.6 billion (18.4 trillion won) in an assembly plant and two battery joint ventures, enabling additional production capacity. The decision to make this investment was made during the first Trump administration,” said Muñoz.

In its HMGMA plant in Georgia, Hyundai aims to ramp up production of the 2025 IONIQ 5 EV. Hyundai’s Georgia plant kicked off IONIQ 5 production in October 2024. The Korean automaker is also preparing to produce the IONIQ 9 EV by the end of Q1 2025 at HMGMA.

HMGMA was supposed to focus only on fully electric vehicles initially. However, after EV sales dropped in 2024, Hyundai decided to produce hybrids at its Georgia plant. Hyundai’s CEO announced that preparations for hybrid production are underway at the facility.

Hyundai plans to offer an array of vehicles to customers worldwide, including internal combustion engine (ICE) cars, EVs, hybrids, and even hydrogen cars. Despite its plans, the legacy automaker still seems keen on an electrified future. It pledges to invest $90 billion over the next decade to develop 21 EVS and 14 hybrids. Hyundai aims to increase EV sales to over 2 million units worldwide by 2030.

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