Toyota Motor Corporation announced plans to relocate production of its Tacoma midsize pickup truck from its plant in Mexico to San Antonio, Texas, as part of a $3.6 billion investment in the Texas facility. The move includes the addition of a second production line at the San Antonio plant, where Toyota already produces full-size pickups and SUVs. The expansion is expected to create approximately 2,000 new jobs by 2030.

This shift in manufacturing comes amid stalled negotiations between the United States and Mexico over renewing the North American free trade agreement. The July 1 deadline for extending the trade pact passed without an agreement, amid heightened trade tensions and uncertainty in the region. U.S. President Donald Trump, who has consistently urged automakers to increase domestic investments, has welcomed Toyota’s commitment to boosting production in the United States.

Toyota’s announcement follows its broader pledge last year to invest $10 billion in its U.S. operations over the next decade. The company aims to capitalize on a growing U.S. market and its potential to surpass General Motors in new vehicle sales volume within the country later this year. The move to consolidate production in Texas reflects Toyota’s strategic focus on increasing its domestic manufacturing footprint in response to evolving trade policies and competitive market dynamics.