Toyota to Shift Tacoma Production to Texas in $3.6B Expansion

Toyota announced a $3.6 billion investment to expand its San Antonio, Texas, plant and gradually shift production of the Tacoma midsize pickup from its Tijuana, Mexico, facility over the next four years, adding 2,000 jobs. Source: CNBC, Mexico News Daily

The shift

Tacoma production will be transferred from Toyota's Baja California plant to a new second assembly line in San Antonio, while the Guanajuato plant in Mexico will continue building the model. Source: Fox Business, The Next Web The expansion will double the plant's size by 2030 and bring total investment to $8.3 billion since 2003. Source: CNBC

Differing narratives

President Donald Trump quickly framed the move as a victory for his tariff policy, posting 'Tariffs at work!' Source: Fox Business. However, Toyota did not attribute the decision to tariffs. North America CEO Ted Ogawa cited 'confidence in the region’s workforce, innovation, and long-term growth potential.' Source: The Next Web The announcement comes amid USMCA uncertainty after the U.S. declined to renew the pact in its current form on July 1. Source: The Next Web

Broader impact

Toyota's U.S. sales rose 0.5% in the first half of 2026, closing in on GM. Source: CNBC Meanwhile, Mexico's Economy Ministry noted that Toyota continues operations in Mexico and hinted at a $500 million investment from another automaker. Source: Mexico News Daily