Toyota will move part of Tacoma's midsize pickup truck production from Mexico to San Antonio, Texas, as part of a $3.6 billion expansion program aimed at strengthening the company's manufacturing base in the United States and reducing the impact of customs tariffs, Bloomberg reports. This investment will create a second assembly line at the Texas plant, create about 2,000 jobs by 2030, and increase annual capacity by 150,000 units, bringing the total plant area to about 5 million square feet.
The move follows Toyota's broader pledge to invest $10 billion in U.
S. manufacturing over the next decade and comes amid stalling negotiations to renew the U.
S.-Canada-Mexico Free Trade Agreement (USMCA) and pressure on automakers from U.
S. duties of up to 25% on vehicles made in Mexico The Tacoma is the most popular mid-size pickup truck in the United States, with sales reaching a record high of 274,638 units last year and rising by almost 10% by June this year.
Toyota will continue to produce some Tacoma pickups in central Mexico for export to the United States, but production at the Tijuana plant will be reduced, raising questions about the future use of production capacity at the facility. Analysts see the move as a strategic response to prolonged trade uncertainty, while President Trump praised the decision as proof that tariffs affect investment decisions.
