Trump takes credit for Toyota moving some truck production from Mexico to Texas: ‘That’s what tariffs do’

Toyota is planning a $3.6 billion expansion of its Texas truck assembly plant. President Donald Trump took credit for the investment.

On Monday, the automaker announced the multibillion-dollar investment to add a second vehicle assembly line at its San Antonio manufacturing campus to support production of the Tacoma pickup. Toyota said the expansion project would shift some of the midsize truck’s production from its Mexico plants to San Antonio over roughly 4 years. Toyota will still build some Tacoma models and the Corolla in Mexico.

While Toyota did not attribute the expansion to tariffs in its announcement and the company is not fully exiting production in Mexico, Trump said the fresh investment was a sign that his tariffs were working.

“It came over the wires that Toyota is moving out of Mexico into the United States, and building one of the biggest truck and car plants ever built,” Trump said on Tuesday during a visit to Ankara, Turkey. “It’s amazing. That’s what tariffs do, properly used.”

Toyota said the investment will create 2,000 jobs and add 2.5 million square feet to the site, doubling the company’s Texas footprint by 2030.

On Monday, Ted Ogawa, president and CEO of Toyota Motor North America, said the investment reflected the company’s “confidence in the region’s workforce, innovation, and long-term growth potential.”

The move gives Trump a high-profile example of a well-recognized company creating manufacturing jobs. His administration has argued that tariffs incentivize companies — particularly automakers — to reshore manufacturing in America and reduce reliance on foreign production.

Toyota’s announcement also comes amid major uncertainty for automakers with plants in North America. The USMCA — the trilateral free trade pact between the US, Canada, and Mexico struck during Trump’s first term — is under review after the US declined to renew the treaty in its current form on July 1. The Trump administration is reportedly pushing to change the agreement so 50% of all automotive parts and manufacturing would happen in the US.

Toyota also nodded to that trade uncertainty in its release, saying it remained committed to operations in all three countries while encouraging “a quick resolution to USMCA” to keep North America globally competitive.