Toyota said Monday it will shift most production of its mid-size Tacoma pickup from its Tijuana, Mexico, facility to its San Antonio, Texas, plant as part of a $3.6 billion investment.
The transition from Toyota's Tijuana, Mexico, facility will take roughly four years, the company said. It plans to build a second assembly line at its San Antonio factory, creating more than 2,000 jobs and increasing annual production capacity at the plant by 150,000 units.
Toyota will also keep building some Tacoma trucks at its Guanajuato, Mexico, plant. The San Antonio plant currently produces Tundra SUVs and Sequoia pickups and is on track to open a rear axle assembly facility on its Texas campus this fall.
The announcement comes just days after Washington declined to renew a North American trade pact with Mexico, as well as Canada, fueling uncertainty for businesses. Although that pact remains in force for another 10 years, Washington said last week that the trade agreement will now be reviewed annually, a move expected to impact investor sentiment.
Toyota said in November it planned to invest as much as $10 billion in the United States over the next five years. "The investment is aimed at further enhancing Toyota's locally rooted and competitive production system," the company said.
Global automakers, including U.S. companies, produce many vehicles in Mexico to benefit from various trade deals including the existing USMCA. "Toyota remains committed to its operations throughout the U.S., Canada, and Mexico, and encourages a quick resolution to USMCA to make the North American region globally competitive," Toyota said as it announced its plans Monday, and other manufacturers are shifting production to the United States as President Trump raises tariffs on automobiles, steel and aluminum, among other items.