South Korea’s auto giant Hyundai will hold a completion ceremony for its new U.S. plant, Hyundai Motor Group Metaplant America (HMGMA), in Georgia later this month. With the U.S. set to impose reciprocal tariffs on April 2, Hyundai’s investment and plans to expand local production could play a role in trade negotiations.
The ceremony will take place in mid-next week, with Hyundai Chairman Chung Eui-sun and key executives in attendance, along with Georgia Governor Brian Kemp and U.S. federal and state officials. The company also sent an invitation to U.S. President Donald Trump, but it is unclear whether any members of his administration will attend.
The automaker reportedly scheduled the ceremony after Trump announced plans to impose new tariffs and negotiate trade agreements starting in April. The U.S. Department of Commerce recently confirmed that tariffs will be implemented first, followed by bilateral talks with individual countries. This has raised concerns that South Korea, which has a trade surplus with the U.S., could face pressure to renegotiate or even scrap the South Korea-U.S. Free Trade Agreement (FTA).
At the event, Hyundai plans to highlight its investments in the U.S. and outline future strategies, emphasizing job creation and contributions to the local economy. The company hopes its commitment to the U.S. market will strengthen its position in tariff negotiations. Hyundai is also considering expanding HMGMA’s annual production capacity from 300,000 to 500,000 units.
Despite recent visits by South Korean officials to the U.S. pushing for tariff exemptions and fair treatment, progress has been limited. Analysts say the country’s trade surplus with the U.S. and a lack of direct diplomatic engagement have put it at a disadvantage in negotiations.
Trump is using tariffs as a bargaining tool, waiting for trading partners to make meaningful offers. With limited options for government action, the burden is falling more on private companies. In South Korea, major exporters like automakers and semiconductor firms are expected to increase local investments to ease tariff pressure.
Other U.S. allies, such as Japan and Taiwan, are taking a joint approach between government and business to avoid tariffs. Japanese Prime Minister Shigeru Ishiba recently told Trump that companies like Toyota, Isuzu, and Nippon Steel plan to invest $1 trillion in the U.S. Taiwan’s TSMC has also announced a $100 billion investment and is considering acquiring Intel’s foundry business.
South Korea posted a $66 billion trade surplus with the U.S. last year, making it America’s eighth-largest trade deficit partner after China, Mexico, Vietnam, Ireland, Germany, Taiwan, and Japan. Automobiles, including Hyundai vehicles, accounted for the largest share of South Korea’s $122.79 billion in exports to the U.S. at 27.2%, followed by semiconductors at 8.4%.
