Toyota Moves Some Tacoma Output to Texas; Trump Claims Credit
Toyota will invest $3.6bn to expand its San Antonio plant and shift some Tacoma pickup production from Mexico to Texas over about four years, adding 2,000 jobs.
President Donald Trump quickly claimed the move as proof his trade policy is working, stating, "That’s what tariffs do, properly used."
However, Toyota did not attribute the expansion to tariffs and is not exiting Mexico. Its announcement cited "confidence in the region’s workforce, innovation, and long-term growth potential".
The company plans to gradually shift production from its Baja California plant over roughly four years while continuing to build Tacomas in Guanajuato and Corollas in Mexico.
This expansion brings Toyota’s total San Antonio investment to $8.3bn since 2003 and doubles the Texas site by 2030, lifting annual capacity by 150,000 vehicles.
The US declined to renew USMCA in its current form on July 1st, opting for annual reviews and pushing for a requirement that 50% of automotive value be made in America. Toyota urged a "quick resolution" to USMCA while reaffirming its commitment to all three North American countries.
For Trump, the announcement offers political win regardless of Toyota’s framing, showcasing a major brand adding jobs in the US due to perceived pressure from tariffs.
Toyota, on the other hand, capitalizes on strong US market momentum for hybrids and solid sales of conventional trucks while navigating the shifting landscape of electric vehicles and evolving trade policies.