Hyundai Motor Company and Johnson & Johnson have launched significant investment initiatives in the U.S. Hyundai plans to invest $20 billion, including building a $5 billion steel plant in Louisiana. Johnson & Johnson plans to increase its U.S. investments by 25% to over $55 billion over the next four years.
President Donald Trump stated, “Money is pouring in. This investment is a clear demonstration that tariffs very strongly work.”
Hyundai revealed that its steel plant in Louisiana will produce over 2.7 million metric tons of steel each year. The plant will support operations in Alabama and Georgia.
Hyundai also announced plans to enhance its vehicle production capacity to 1.2 million vehicles annually. It will additionally invest in advanced technologies such as artificial intelligence and autonomous driving systems.
Johnson & Johnson revealed that it will construct four new manufacturing plants. U.S. company Eli Lilly is also committing $27 billion to U.S. manufacturing over five years to mitigate the impact of tariffs on imports.
These investments mark a significant shift toward local production and are expected to strengthen their market positions as import taxes loom. Johnson & Johnson’s Wilson facility is projected to invest over $2 billion and create over 500 permanent positions.
Gabelli Funds portfolio manager Jeff Jonas said, “The $55 billion number also includes a portion of their regular, annual R&D and IT spending. So, they’ve thrown a lot in there to get to a big, splashy number.”
Jonas added, “In the short term, they are trying to lobby for a tariff exemption. In the medium/longer term, everyone is moving even further towards a local manufacturing strategy. Even if there is a tariff deal, the era of free trade and unrestricted globalization is over.”
Written by John Baker for The News Observer ~ April 20, 2025
