Toyota is moving production of its Tacoma pickup trucks from Mexico to the United States. President Donald Trump announced this on Truth Social, stating that 'tariffs work.'

The decision is linked to a major investment by Toyota's North American division — $3.6 billion to expand the Toyota Texas plant in San Antonio. The facility will gain a second assembly line and nearly double its floor space to 233,000 square meters by 2030.

Over the next four years, Tacoma production will be fully transferred from the Mexican plant in Baja California to the upgraded Texas site. The company has not disclosed what will happen to the Mexican plant.

Trump previously imposed import tariffs on goods from more than 180 countries, promising to bring manufacturing back to the United States.