AMU: Toyota to shift Tacoma production back to Texas as USMCA review continues

The expansion adds a second vehicle assembly line to Toyota Texas and increases the San Antonio campus by 2.5 million square feet. Toyota expects to shift Tacoma production from Toyota Motor Manufacturing Baja California to the expanded Texas plant over roughly four years. 

The announcement came July 6, five days after the US trade representative said the US would not renew the US-Mexico-Canada Agreement (USMCA) in its current form during the pact’s first joint review. The agreement remains in force while negotiations continue. 

Tacoma shift reverses earlier move 

Toyota’s latest announcement reverses part of a production strategy the company outlined shortly after revised USMCA terms were agreed in December 2019. 

On Dec. 10, 2019, the US, Mexico, and Canada agreed to amendments to the proposed USMCA. 

Those changes included tighter automotive rules of origin, a requirement that 75% of vehicle content originate in North America and required 70% of a vehicle’s aluminum and steel originate in the region. 

During the same month, Toyota Motor Manufacturing de Guanajuato began assembling the Tacoma, joining Toyota Motor Manufacturing de Baja California, which had produced the pickup since 2004. One month later, Toyota announced San Antonio would stop producing the Tacoma by late 2021 while Baja California and Guanajuato continued to assemble the truck model. 

Tacoma production in Baja California expanded before the USMCA pact. In 2018, Toyota increased the plant’s annual Tacoma production capacity to 160,000 vehicles from 100,000. 

Currently, during the first formal USMCA review, Toyota plans to move Tacoma production from Baja California back to Texas.

Recent Tacoma sales 

The Toyota Tacoma remains one of Toyota’s top-selling models in the US.

During the first half of 2026, 143,848 Tacoma pickups were sold. The sales reflect an increase of 9.9% from the first six months of 2025. Overall, Toyota Motor North America sales increased 0.5% over the same period.

Tacoma ranked third in Toyota’s highest-volume models in the US market. The Camry, at 179,044 units, and the RAV4, at 153,955 units ranked higher.

Camry sales increased 15.3% year over year during the period, while RAV4 sales declined 35.7%. Total Toyota division pickup sales increased by 6% to 218,216 units.

Surrounding aluminum supply chain 

The move also places Toyota’s regional manufacturing footprint back in focus because vehicle assembly determines where manufacturing scrap is generated.

Toyota Tsusho, the Toyota Group trading company, is affiliated with Green Metals Inc. through Toyota Tsusho America. Green Metals lists a San Antonio location at the same street address as Toyota Motor Manufacturing Texas.

Toyota Tsusho is also affiliated with TT Green Metals Mexico, S.A. de C.V.. TT Green Metals in Guanajauto, is in close proximity to the Tacoma assembly plant.

Toyota didn’t discuss recycling operations in its expansion announcement. However, shifting Tacoma production from Baja California to Texas, where the San Antonio plant’s current annual production capacity minimum equates to ~200,000 vehicles could affect scrap generation.

Through Toyota Tsusho, the Toyota Group also maintains an affiliated downstream recycled aluminum smelting network. In Mexico, Toyota Tsusho has an affiliated secondary aluminum smelter near its Guanajuato assembly plant and TT Green Metals Mexico. In the US, Toyota Tsusho has two affiliated secondary aluminum producers operating three facilities.

Trade talks continue 

Toyota’s announcement did not tie the San Antonio expansion to the USMCA review. The company said it remains committed to operations across North America. It is encouraging trade talks to resolve swiftly.

That said, Toyota moved Tacoma production deeper into Mexico as the original USMCA framework took shape. Six years later, with the US pressing for changes to the agreement, Toyota plans to return part of that production to Texas.