Key facts
- President Donald Trump stated his tariff policy has driven foreign automakers to build plants in the U.S.
- He specifically mentioned South Korean, Japanese, and German automakers.
- Trump said the companies build factories in the U.S. to avoid paying tariffs.
- Hyundai Motor Group announced a $26 billion investment in the U.S. through 2028.
- Trump made these remarks during a White House event.
U.S. President Donald Trump reiterated on Monday that his administration's tariff policy has been instrumental in driving South Korean, Japanese, and German automakers to establish manufacturing plants within the United States. Speaking at a White House event, Trump asserted that these companies are building factories in the U.S. to avoid paying tariffs on their vehicles.
"We've never built as many automobile plants. They are all over, and they are coming from all over the world. You know why? Because they don't want to pay tariffs. If they build their cars here, they pay no tariffs," Trump said. He added, "So Japan, instead of making them in Japan ... or South Korea ... instead of making them in Germany ... They are all building plants here now."
Since returning to the White House, Trump has utilized tariffs as a primary policy tool to revitalize American manufacturing, attract foreign investment, and reduce trade deficits. In response to this tariff pressure, South Korean conglomerate Hyundai Motor Group announced last year its intention to invest $26 billion in the U.S. through 2028.