Toyota recently announced that it will start building half of its best-selling midsize Tacoma pickups at an expanded plant in San Antonio, Texas. This move is a rare example of an automaker shifting production to the US, despite the tariffs imposed by the Trump administration.
Tariffs and Production
The Trump administration had announced sweeping auto tariffs to spur the construction of new American factories. However, most automakers have been reluctant to move production to the US, citing the high costs and uncertainty involved.
According to Ivan Drury, director of insights at car buying site Edmunds, building a factory is a huge commitment and doing it on a whim would be borderline crazy. As a result, many automakers have chosen to continue importing vehicles and paying tariffs instead of investing in new US-based production facilities.
Business Reasons
Toyota’s decision to shift production to the US is driven by business reasons beyond trade policy. The company has been successful in growing its truck business in the US, and its San Antonio production is already a key part of that. Consolidating existing operations makes sense for the company.
However, the tariffs have taken a bite into the earnings of automakers. Toyota paid $8.4 billion in duties in its most recent fiscal year, swinging its North American results from a profit to loss. General Motors paid $3.1 billion in tariffs in 2025, and Ford paid $1 billion.
Original reporting: KTVZ (Central Oregon) — read the source article.
