Hyundai Motor will hold a completion ceremony for its new plant, Hyundai Motor Group Metaplant America (HMGMA), established in the U.S. state of Georgia, at the end of this month. Attention is focused on whether announcements regarding achievements in U.S. investments and expansion of local production will serve as negotiating cards ahead of the mutual tariff commencement on April 2.
According to industry sources on the 18th, Hyundai Motor will hold the completion ceremony for the new plant HMGMA in Georgia in mid-next week. Hyundai Motor Group Chairman Euisun Chung and key executives are expected to attend, along with officials from state governments and the federal government, including the governor of Georgia. An invitation has been sent to Donald Trump, the U.S. President, but it remains uncertain whether members of the administration will attend.
Hyundai Motor reportedly finalized the schedule for the completion ceremony after President Trump announced tariffs on mutual goods and the conclusion of a new trade agreement next month. The day before, the U.S. Department of Commerce stated that it would initiate bilateral negotiations for new trade agreements after imposing mutual tariffs. For South Korea, which records a trade surplus with the U.S., there are concerns about the possibility of revisiting or scrapping the Korea-U.S. Free Trade Agreement (FTA).
During the upcoming completion ceremony, Hyundai plans to formalize its achievements in U.S. investments and future plans. The company aims to highlight its contributions to job creation and local economic revitalization to enhance its bargaining power amid tariff pressure from President Trump. There are also discussions about expanding the production capacity of HMGMA from an annual level of 300,000 units to as much as 500,000 units.
Recently, government officials have been visiting the U.S. in succession to convey South Korea's positions, including exemptions from mutual tariffs, and request for non-discriminatory treatment. However, assessments indicate that tangible results have been limited. The lack of diplomatic engagement and the trade surplus with the U.S. have led to analyses suggesting that South Korea is at a disadvantage in negotiations compared to other countries.
President Trump is leveraging tariffs as a tool, waiting for other countries to present meaningful proposals. Given the limitations of government responses, the burden has increased for private corporations. Domestically, major export corporations, such as those in the automotive and semiconductor sectors, are expected to offer tacit concessions to alleviate tariff pressures, like expanding local investments.
Some allied countries, including Japan and Taiwan, are responding collectively with their governments and private corporations to avoid tariffs. Shigeru Ishiba, the Japanese Prime Minister, promised to increase investment in the U.S. to $1 trillion by leading corporations such as Toyota, Isuzu, and Nippon Steel during a summit with President Trump. Taiwan's TSMC announced a new investment plan of $100 billion in the U.S. and is considering the acquisition of Intel's foundry sector.
Last year, South Korea recorded a trade surplus of $66 billion (approximately 95.634 trillion won) with the U.S. From the U.S. perspective, South Korea is the eighth largest trade partner with a deficit after China, Mexico, Vietnam, Ireland, Germany, Taiwan, and Japan. Among last year's exports to the U.S. (totaling $122.79 billion), automobiles, including those from Hyundai, made up the largest share at 27.2%. The next most exported item was semiconductors at 8.4%.