Trump says Toyota shifting production from Mexico to US

President Donald Trump said on Tuesday that Toyota is moving some of its production facilities from Mexico to the United States, specifically to Texas, attributing the decision to the tariff regime his administration has imposed on trading partners. In a post on his Truth Social platform, the president wrote: "Toyota is moving from Mexico to the United States (Texas!). A really big deal. Tariffs at work," adding that the tariffs were driving manufacturing back to the US.

Tariff policy pressures

The announcement follows Trump's imposition of steep tariffs on multiple trading partners last year, including Japan, as part of a broader strategy to reduce chronic US trade deficits and compel foreign firms to relocate production to American soil. To avoid the duties, manufacturers have faced increasing pressure to shift operations stateside, particularly after the administration raised tariffs on foreign-made cars to 27.5% last April from the previous 2.5%.

Japan-US trade context

The tariff rate on Japanese vehicles was subsequently reduced to 15% in July, with the new rate taking formal effect in September, according to trade officials. Auto exports accounted for approximately 30% of Japan's total exports to the US in 2023, representing the largest share among all sectors and underscoring the strategic importance of the automotive industry to bilateral trade relations between Washington and Tokyo.