Toyota transfers half of Tacoma pickup production from Mexico to Texas

Toyota announced that it will shift half of the production of its best‑selling midsize Tacoma pickup from its Tijuana plant in Baja California to an expanded facility in San Antonio, Texas, while keeping the remaining output in Mexico. The company is investing $3.6 billion in the Texas plant, adding a second assembly line and creating about 2 000 new jobs, with full conversion expected by 2030. President Donald Trump praised the move as evidence that tariffs are working, though Toyota said the decision is driven by long‑term strategic goals and growing demand in the United States rather than tariffs alone.

The shift occurs as other automakers remain reluctant to relocate production because of the high costs of building new factories and the uncertainty surrounding the US‑Mexico‑Canada Agreement (USMCA) and Section 232 tariffs. Mexico’s auto industry simultaneously faces a decline in its share of the U.S. market, falling to 19.2%, the lowest level since 2019, and is dealing with broader pressures from tariffs, stricter rules of origin and the transition to electric vehicles. President Claudia Sheinbaum said her government is negotiating tariff reductions and meeting with automakers to prevent plant closures. Real‑estate firm CBRE reported that many automotive‑related development projects are on hold pending the outcome of annual T‑MEC reviews.