Former President Donald Trump’s proposal to place broad tariffs on foreign imports is intended to push international manufacturers to build their products in U.S. factories and hire American workers, according to The White House.
In a recent interview with the conservative outlet Newsmax, Trump claimed that this strategy is already showing success, according to NPR.
The New York Times said that when asked for evidence, the White House pointed to recent expansion announcements from automakers Hyundai, Stellantis, and Honda.
However, automotive industry experts contend that Trump’s claims are exaggerated. In many instances, the announcements reflect reallocated investments at existing facilities rather than the construction of entirely new plants, and their completion remains uncertain, according to CNBC.
In early 2025, Hyundai disclosed plans to scale up operations at its Georgia Metaplant, raising annual capacity from 300,000 to 500,000 vehicles. The expanded output will include both electric and hybrid vehicles, Hyundai.com said.
The company also said it intends to increase production at its Alabama facility, though it did not provide a specific figure. That plant currently produces around 356,100 vehicles per year, Yahoo said.
The following month, at a White House event, Hyundai outlined a larger investment initiative totaling roughly $21 billion in the U.S. Among the highlights is a $5.8 billion steel plant in Louisiana, which will support the company’s electric vehicle supply chain, according to Reuters.
In a shift from its initial manufacturing plans, Honda is reportedly moving production of its next-generation Civic hybrid from Mexico to the U.S., according to a the Kelley Blue Book.
The company had intended to launch production in Guanajuato, Mexico, in late 2027. Instead, Honda now aims to build the vehicle at its Greensburg, Indiana plant, with assembly expected to begin in May 2028. Annual output at the Indiana facility is projected to reach 210,000 units once production is underway, according to Car and Driver.
In January, Stellantis—the Dutch parent company of Chrysler, Jeep, Fiat, and several other brands—announced a $5 billion investment package for its U.S. operations. A key component of the plan includes reviving its idled assembly plant in Belvidere, Illinois, which had ceased operations in February 2023 after producing Jeep Cherokees, Automotive Manufacturing Solutions said.
Under the new plan, Stellantis intends to retool the facility for midsize truck production, with manufacturing scheduled to begin in 2027, according to Automotive Drive.
