Toyota Moves Half of Tacoma Production to Texas Amid Ongoing Auto Tariffs

In July 2026, Toyota announced that half of its best-selling midsize Tacoma pickups will be assembled at its expanded San Antonio plant, joining the Tundra and Sequoia lines already built there. The company will continue to produce Tacomas in Mexico, making the move an exception rather than a broader industry trend. Toyota emphasized that the decision stems from “multi-decade decisions based on broader strategic goals,” not directly from tariff policy.

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The shift occurs against a backdrop of the Trump-era auto tariffs and the pending renegotiation of the United States-Mexico-Canada Agreement (USMCA). Automakers have paid substantial duties—Toyota $8.4 billion, General Motors $3.1 billion in 2025, and Ford $1 billion—yet most continue importing vehicles because building new U.S. capacity entails billions in investment and years of construction. The American Automakers Policy Council, representing GM, Ford, and Stellantis, called for “a swift and durable resolution that ensures a level playing field and provides long-term certainty needed for capital-intensive automotive investments.” Labor costs and the risk of rapid policy shifts further deter large-scale relocations.

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Toyota’s spokesperson told CNN that its investments are guided by long-term strategy rather than “evolving trade policies.” President Donald Trump praised the San Antonio expansion as “a really big deal” and evidence that “Tariffs at work!” The American Automakers Policy Council issued a statement urging certainty for future capital projects.

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Ivan Drury, director of insights at Edmunds, described building a new factory “on a whim” as “borderline crazy,” highlighting the financial risk. Michigan economist Patrick Anderson noted that Toyota’s strong U.S. truck sales make consolidating existing operations “natural business sense.” Despite high tariffs, overall U.S. vehicle sales rose 2 % in the prior year, reinforcing automakers’ preference for maintaining import flows.

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• “a really big deal” — President Donald Trump

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• “Tariffs at work!” — President Donald Trump

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• “While we are impacted by evolving trade policies, our investments are multi-decade decisions based on broader strategic goals,” — Toyota spokesperson

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• “We urge a swift and durable resolution that ensures a level playing field and provides long-term certainty needed for capital-intensive automotive investments,” — American Automakers Policy Council

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• “It’s a huge commitment (to build a factory) and to do it on a whim would be borderline crazy,” — Ivan Drury, Edmunds

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• “Toyota has been very successful at growing its truck business in the United States, and their San Antonio production is already the mainstay of that in the United States,” — Patrick Anderson, Michigan economist

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