Tariffs reshape North American auto production as Toyota shifts to Texas

Toyota announced a $3.6 billion investment to move part of its Tacoma pickup production from Mexico to Texas by 2030, a move that highlights the pressures of US tariffs under Section 232. The decision, which will create 2,000 jobs in San Antonio, comes as other automakers remain reluctant to relocate. Most prefer paying tariffs over costly factory construction, with only a slight drop in imported vehicle share (46% in 2025 vs 47.7% in 2024) Source: CNN.

Industry response

• Toyota stated the investment is based on long-term strategic goals, not solely tariffs Source: CNN.
• Francisco González, president of INA, said Mexico will not see plant closures but a natural redistribution of models among North American plants; he noted that auto parts production grew 10% in early 2026 Source: Milenio.
• Juan Carlos Baker, ex-trade official, warned that stricter rules of origin will force automakers to develop local suppliers and rethink supply chains Source: Milenio.

Government and trade implications

• President Claudia Sheinbaum plans a third meeting with automakers to prevent closures and is negotiating tariff reductions with the US Source: Heraldo.
• She also highlighted Hyundai's use of the Interoceanic Corridor for vehicle transport, signaling efforts to diversify logistics Source: Heraldo.
• The T-MEC trade deal remains under review, with Trump threatening to abandon it if not renegotiated; automakers urge certainty for capital-intensive investments Source: CNN, Infobae.