South Korea’s Hyundai Steel, part of the Hyundai Motor and Kia automotive conglomerate, is seriously considering opening a steel plant in the southeastern United States. This decision comes against a backdrop of growing uncertainty due to protectionist trade policies that US President Donald Trump may implement, including the imposition of 25% tariffs on Mexico and Canada from 1 February.
Drivers of the Decision
Amid a changing trade scenario, Hyundai Steel believes a plant on US soil could be a strategic move in the face of potential tariffs and trade barriers that the US could impose on other markets.
The Trump administration has shown its intention to apply tariffs to both the European Union and China, which could alter the dynamics of international trade and affect the automotive industry that depends on imported steel for the manufacture of vehicles.
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Objective: Supply Steel to Local Automakers
If the project goes ahead, the Hyundai Steel plant would be dedicated to the production of steel, especially plate, to supply US carmakers.
Hyundai Motor and Kia already have vehicle manufacturing plants in Alabama and Georgia, and the construction of a steel plant near these facilities could ensure a more direct and efficient supply of materials, in line with the production needs of their factories in the US and Mexico.
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