Toyota: $3.6 Billion to Shift Some Automotive Production to U.S. from Mexico

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Written by Danny Levin, Deputy Editor for IIR News Intelligence (Sugar Land, Texas)

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Summary

Toyota plans to invest $3.6 billion to shift some Tacoma truck production to Texas from Mexico, reflecting its reshoring effort amid uncertainty around the USMCA agreement and ongoing U.S. tariffs.

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Why Now?

Toyota said July 6 it will invest $3.6 billion to shift some production of the Tacoma truck to the U.S. from Mexico by expanding its manufacturing campus in San Antonio, Texas. This comes as the automotive industry faces uncertainty around the United States-Mexico-Canada Agreement (USMCA) trade agreement and ongoing U.S. tariffs.

Industrial Info Resources data shows $21.7 billion worth of active and planned automotive projects from Toyota across North America, nearly all of which is in the U.S.

The data also shows 13 operational automotive plants from the automaker in Mexico compared with 56 in the U.S.

"Toyota's continued investment in North America is a testament to our confidence in the region's workforce, innovation and long-term growth potential," Ted Ogawa, the chief executive officer of Toyota Motor North America, said in a statement.

"By expanding our San Antonio plant, we are deepening our commitment to American manufacturing."

The automaker reiterated it remains committed to its operations throughout North America, not just the U.S., "and encourages a quick resolution to USMCA" to make the region globally competitive.

U.S. President Donald Trump, meanwhile, said the move is a "really big deal," pointing to "tariffs at work."

USMCA and U.S. Tariffs

On July 1, the U.S. formally declined to agree to an automatic extension of the USMCA in its current form for another 16 years, instead opting for annual reviews while negotiations continue. Failure to reach an agreement by July 1, 2036, means the pact expires.

Aspects of the current agreement include requiring vehicles to have 75% of their content produced in North America. Media reports from late May indicated the Trump administration was pushing Mexico to raise the content threshold to 82% to receive preferential tariffs.

The United States' trade relationship with Canada is significantly frostier than with Mexico, although the two countries also have begun talks.

Trump last year imposed a 25% tariff on passenger vehicles imported from Canada and Mexico, which also applies to some auto parts. That is in addition to 50% duties on steel, aluminum and copper from those countries.

For more information, see June 15, 2026, article - Trump May Scrap North America Trade Pact.

Toyota's U.S. Investment

The newly announced $3.6 billion investment is aimed at shifting Tacoma production from Toyota Motor Manufacturing Baja California in Tijuana, Mexico, to a manufacturing campus in San Antonio, Texas.

A standalone building will sit next to an existing 2.2-million-square-foot plant, adding a new assembly line to support the Tacoma pickup. Construction could begin by the end of the year. Industrial Info Resources offers more information on the project in its Global Market Intelligence (GMI) Industrial Manufacturing Plant and Project databases in a detailed plant profile and project report.

The site already has an operational vehicle assembly line, while a $531 million, 500,000-square-foot plant expansion solely designated for rear axles is nearing startup. Readers can view a detailed project report.

Toyota plans to shift all of the Tacoma production from its Tijuana, Mexico, assembly plant over a four-year period, while its plant in Apaseo El Grande will continue to produce the truck.

Industrial Info Resources offers a full list of active and planned automotive projects from Toyota in North America. Projects under construction include:

• $10 billion worth of investment in Liberty, North Carolina to support batteries for EVs and plug-in hybrids
• a $125 million expansion at its Blue Springs Automobile Assembly plant in Mississippi for the first electrified Corolla model in the U.S.
• a $88 million expansion at its Buffalo Engines & Transmissions plant in West Virginia to produce next-generation hybrid transaxles for future Toyota and Lexus vehicles.

Readers can view detailed information on the projects, all of which could wrap up next year.

Key Takeaways

• Toyota plans a $3.6 investment to shift some of its Tacoma truck production from Mexico to the U.S.
• This comes amid uncertainty around the USMCA and U.S. tariffs on some auto content, as well as steel, aluminum and copper, imported from Canada and Mexico.
• $21.7 billion: Total value of active and planned automotive projects from Toyota across North America, nearly all of which is in the U.S.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).