Toyota announced a $3.6 billion investment to move Tacoma production from Mexico to Texas, expanding its San Antonio manufacturing plant with a second assembly line and creating 2,000 new jobs over the next four years.
The expansion, announced July 6, will add 2.5 million square feet to Toyota Motor Manufacturing Texas, effectively doubling the facility’s size by 2030. Toyota Motor North America said it will transition Tacoma production from its plant in Baja California, Mexico, to San Antonio over approximately four years. The plant currently assembles the Tundra and Sequoia; the Tacoma will join that lineup once the new line opens.
The shift reflects the changing economics of North American auto manufacturing in the face of U.S. tariffs and trade uncertainty. On July 1, 2026, the U.S. allowed the United States-Mexico-Canada Agreement (USMCA) to expire without renewal, creating immediate uncertainty over tariff treatment for vehicles assembled in Mexico. Under the new tariff regime, vehicles made in Mexico face duties of up to 25 percent on the value of non-U.S. parts, making domestic production more cost-competitive.
Other automakers have faced similar pressure. General Motors paid $3.1 billion in tariffs in 2025, and Ford paid $1 billion, according to reporting from CNN. The tariff burden has prompted a broader industry shift toward reshoring production to the U.S., though many manufacturers remain cautious about committing to major capital investments amid ongoing trade policy uncertainty.
Toyota’s San Antonio facility has been in operation since 2003. With this latest investment, Toyota’s cumulative investment in the San Antonio plant reaches $8.3 billion. The expansion will bring the local workforce to approximately 6,000 team members, supported by 23 on-site suppliers and their employees, according to the company’s announcement.
Toyota said it remains committed to operations throughout the U.S., Canada, and Mexico, and called for a quick resolution to USMCA to make the North American region globally competitive. The company continues operating its Baja California plant, which will continue producing some hybrid models alongside other vehicles.
Sources
- Toyota USA Newsroom — Official announcement of $3.6 billion investment, 2,000 jobs, 2.5 million square feet expansion, four-year transition timeline, and total San Antonio investment of $8.3 billion since 2003.
- CNBC — Confirmation of $3.6 billion investment to move Tacoma production from Mexico to Texas.
- CBS News — Reporting on Tacoma production shift and investment details.
- The Hill — Context on four-year production transition period and Baja California plant location.
- CNN — Data on automaker tariff costs: General Motors $3.1 billion in 2025, Ford $1 billion.
- Automotive News — Context on USMCA expiration and 25 percent auto tariff on non-U.S. content.
