Toyota will invest $3.6 billion to build a second assembly line at its San Antonio, Texas plant, shifting the bulk of Tacoma pickup production from its Tijuana, Mexico facility in a gradual process that concludes by 2030. The expansion, which doubles the site’s footprint and adds 2,000 jobs, will increase annual capacity by roughly 150,000 units. The company said the move is part of a global restructuring of manufacturing operations, and it will continue to build some Tacomas at its Guanajuato, Mexico plant, where 2,800 direct jobs remain secure.

Viewed from Washington, President Donald Trump immediately claimed the decision as validation of his tariff policy, posting that “tariffs, properly used” were driving manufacturing back to the United States. Toyota’s own statement did not link the investment to duties, instead citing confidence in the regional workforce and long-term growth. The announcement landed just days after the US declined to renew the USMCA trade pact in its current form, opting for annual reviews—a move that has injected uncertainty into North American supply chains. Toyota urged a quick resolution to the agreement to preserve the region’s competitiveness.

In Mexico City, the Economy Ministry confirmed it had been notified of the transfer and stressed that the Tijuana plant’s future after 2030 remains under analysis. The government also disclosed that, following direct engagement by President Claudia Sheinbaum, another automaker will announce an investment of more than $500 million in Mexico within days, though it did not name the company. Analysts at Banco Base warned that Toyota’s shift could trigger a domino effect: the firm has one of the highest shares of US content among automakers operating in Mexico, at 35 percent, and thus pays relatively low tariffs. If others follow, the disintegration of Mexico’s auto supply chain—which accounts for two-thirds of the country’s manufacturing industry—could accelerate.

Toyota’s total investment in the San Antonio complex since 2003 will reach $8.3 billion. The Tacoma, the best-selling mid-size truck in the US with nearly 300,000 units sold last year, will continue to be produced in Guanajuato alongside the Corolla. The company, which posted record global sales of 11.3 million vehicles in 2025, said it remains committed to operations in all three USMCA countries. The next concrete milestone is the gradual production shift, which Toyota says will take approximately four years, while the promised Mexican investment announcement is expected in the coming days.