Toyota Motor is relocating production of its Tacoma pickup truck from Tijuana, Mexico, to the United States, a strategic shift driven by the escalating impact of U.S. tariffs on Mexican imports.
The decision marks a significant reconfiguration of the automaker's North American supply chain, prioritizing tariff avoidance over the cost advantages of cross-border manufacturing.
This development follows a challenging period for Toyota, which reported a 49% year-on-year drop in operating profit for the quarter ended March, largely attributed to the burden of U.
In response to the relocation, Mexican President Claudia Sheinbaum has announced a new $500 million deal aimed at retaining automotive investment in the country.
The offer underscores Mexico's efforts to mitigate capital flight as trade tensions with the United States intensify, though it comes after Toyota has already committed to moving the Tacoma line.
This development follows a challenging period for Toyota, which reported a 49% year-on-year drop in operating profit for the quarter ended March, largely attributed to the burden of U.S. tariffs.
The profit decline highlights the financial strain on automakers relying on integrated North American production networks that span the U.S.-Mexico border.