Toyota Motor North America announced a $3.6 billion investment to expand its San Antonio manufacturing campus, adding a second vehicle assembly line dedicated to the Tacoma pickup truck. The automaker stated the project will shift a portion of midsize truck production from its Mexican facilities to Texas over a period of approximately four years. The company clarified that it will continue to manufacture certain Tacoma models and Corolla vehicles in Mexico.
The expansion is projected to create 2,000 jobs and add 2.5 million square feet to the existing site, effectively doubling Toyota’s physical footprint in Texas by 2030. Ted Ogawa, president and CEO of Toyota Motor North America, described the decision as a reflection of the company’s confidence in the region’s workforce, innovation capabilities, and long-term growth potential.
President Donald Trump publicly claimed credit for the investment, asserting that his tariff policies were the driving force behind the decision. Speaking during a visit to Ankara, Turkey, on Tuesday, Trump described the move as evidence that tariffs function correctly when applied properly. He noted that Toyota was building one of the largest truck and car plants ever constructed in the United States.
Toyota did not attribute the expansion to tariffs in its official announcement. The company’s statement acknowledged ongoing trade uncertainty, specifically referencing the review of the United States-Mexico-Canada Agreement (USMCA). The US declined to renew the trilateral free trade pact in its current form on July 1. Reports indicate the Trump administration is pushing for changes requiring 50% of automotive parts and manufacturing to occur within the United States.
In its release, Toyota expressed commitment to operations across all three nations while encouraging a swift resolution to the USMCA to maintain North America’s global competitiveness. The automaker’s announcement highlights the complex landscape for manufacturers navigating potential shifts in North American trade policy.
