Immigration Raid at Hyundai Motor Plant: Crackdown Chills International Enthusiasm for Investing in U.S.

Editorial

14:38 JST, September 18, 2025

Amid efforts to attract foreign companies to set up factories in the United States, U.S. immigration authorities suddenly detained numerous workers. This leaves countries that plan to expand their investments, such as Japan, feeling utterly perplexed.

In early September, U.S. immigration authorities temporarily detained 475 construction workers and others at a plant being built by South Korean companies, including Hyundai Motor Co., in the southern U.S. state of Georgia. They were detained for such reasons as illegally crossing the border into the United States and overstaying their visas. About 300 of the workers were South Korean nationals. Some were Japanese.

U.S. President Donald Trump’s administration, which emphasizes measures against illegal immigrants, has tightened visa issuance screening. It is said that some of the detained people with ties to Hyundai Motor had entered the United States on short-term business visas to supervise the factory workers, and engaged in “work.”

This large-scale crackdown may dampen the momentum for investment in the United States.

Among developed nations, the United States is farthest along in deindustrialization, with manufacturing workers accounting for less than 10% of total employment. The reality is that there is a shortage of personnel needed for factory construction and other purposes.

Taiwan Semiconductor Manufacturing Co., which advanced its semiconductor factory construction in the United States, also faced a backlash from the U.S. side after bringing in specialized personnel from Taiwan since it was difficult to secure personnel in the United States.

Hyundai Motor plans to produce batteries for electric vehicles alongside another South Korean company, with operations scheduled to begin in 2026. It is a symbolic South Korean investment project in the United States, and the automaker may have required personnel from the home country to hasten the factory construction.

If the U.S. government aims to restore the status of its manufacturing industries by attracting factories back to the United States, it will need to engage in careful communications with overseas companies, including addressing human resources issues.

Hyundai Motor’s case is not just someone else’s problem. Japan has pledged $550 billion (about ¥80 trillion) in investment in the United States as part of its tariff agreement with Washington. It is the responsibility of the United States to create an environment in which companies can invest with peace of mind.

Meanwhile, on Sept. 16, the Trump administration lowered the tariff rate on passenger cars imported from Japan to 15%. It also began applying a special measure to the “reciprocal” tariffs, which it has set at 15% in principle.

While the Japan-U.S. tariff negotiations reached an agreement on July 22, the timing for lowering automobile tariffs had not been decided yet. This tariff reduction has provided a clear path for implementing the framework agreed upon.

Trump has indicated that he would raise tariffs if Japan’s investment in the United States was insufficient. To ensure the mutual development of Japan and the United States, it is necessary to realize specific investment projects at an early stage. While mapping out plans to build factories in the United States, it is crucial to discuss visa issues as well.

(From The Yomiuri Shimbun, Sept. 18, 2025)