Trump administration's USMCA non-renewal creates uncertainty for Toyota's Texas expansion
USMCA non-renewal threatens Toyota's planned Texas expansion amid uncertain trade conditions.
Event / Economy
Toyota announces $3.6 billion investment to expand its San Antonio manufacturing facility, including construction of a second assembly line and transition of Tacoma production from Mexico to Texas over four years, creating over 2,000 jobs.
2026-08-16 to 2026-11-13 · UTC publication dates
Coverage begins 8 Jul, 01:53 UTC
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Toyota announced plans to invest up to $10 billion in the United States over the next five years through 2030. The $3.6 billion San Antonio expansion is part of this broader commitment to strengthen Toyota's manufacturing presence in North America.
The Trump administration announced it will not renew the trilateral United States-Mexico-Canada Agreement (USMCA). Instead, the administration will conduct annual reviews of the trade pact, which remains in force for another 10 years pending resolution of outstanding issues. This decision came days before Toyota's announcement and reflects uncertainty for North American businesses.
The state of Texas, through the Texas Enterprise Fund and JETI program, approved a $20 million grant and additional incentives to support Toyota's $3.6 billion San Antonio expansion project. The state cited its business-friendly policies, available workforce, and land availability as factors attracting the major manufacturing investment.
Toyota's latest $3.6 billion investment brings the company's total investment in its San Antonio manufacturing campus to $8.3 billion since construction began in 2003. The expanded facility will produce Tundra pickups, Sequoia SUVs, and the newly relocated Tacoma pickups, and will include a new rear axle assembly facility expected to begin production in fall 2026.
Toyota will transition production of its midsize Tacoma pickup truck from its Tijuana, Mexico facility to the expanded San Antonio, Texas plant over approximately four years. The company will continue producing Tacoma trucks at its Guanajuato, Mexico plant alongside the production shift. This relocation is part of Toyota's broader North American manufacturing strategy.
Toyota announced it will invest $3.6 billion to expand its manufacturing campus in San Antonio, Texas. The expansion includes building a second assembly line at the facility, which will add approximately 2.5 million square feet to the campus and effectively double its size by 2030. The project will create over 2,000 new jobs and increase the local workforce to approximately 6,000 employees.
USMCA non-renewal threatens Toyota's planned Texas expansion amid uncertain trade conditions.
Toyota expands San Antonio plant with $3.6 billion investment, moving Tacoma production from Mexico to Texas.