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Japanese auto giant Toyota on Tuesday announced a $3.6 billion investment in its Texas manufacturing facility, where it will relocate production of its mid-size Tacoma pickup truck from Mexico to the United States.
The announcement comes days after Washington said it would not renew the North American trade pact with Mexico and Canada under its current framework, adding fresh uncertainty for businesses operating across the region.
Toyota had announced in November that it planned to invest up to $10 billion in the United States over the next five years.
As part of the latest investment, the world’s largest automaker by vehicle sales will build a second assembly line at its San Antonio, Texas, plant. The expansion is expected to create more than 2,000 jobs and boost the facility’s annual production capacity by 150,000 vehicles, the company said in a statement.
“The investment is aimed at further enhancing Toyota’s locally rooted and competitive production system,” the company said, adding that the new production line is scheduled to begin operations in 2030.
Toyota joins a growing number of global automakers shifting production to the United States as President Donald Trump expands tariffs on automobiles, steel and aluminium.
For years, Toyota and other major carmakers—including US manufacturers—have relied on production facilities in Mexico to benefit from regional trade agreements such as the US-Mexico-Canada Agreement (USMCA).
Although the agreement remains in force for another decade, Washington said last week it would review the pact annually, a move that has raised concerns among investors and manufacturers.
Toyota shares rose 1.3% in morning trading on Tuesday, even as Japan’s benchmark Nikkei index fell 1.2%.