Particle.news
Download on the App Store

Toyota’s $3.6 Billion Texas Expansion Does Not Prove Trump’s Tariffs Right

The company credited Texas’s business climate and production flexibility, signaling that government and industry data linking tariffs to higher prices and job losses remain intact.

Overview

  • This week Toyota announced a $3.6 billion investment to add a second assembly line in San Antonio to build Tacoma trucks and create about 2,000 jobs.
  • Toyota’s official release did not cite tariffs and instead praised Texas’s pro-business policies and advanced manufacturing flexibility as reasons for the move.
  • U.S. government figures and reporting show the administration’s Section 232 tariffs have already cost tens of billions of dollars, with $35.2 billion attributed to autos and parts and $17.5 billion to steel and aluminum through April.
  • Industry studies and reporting link the tariffs to higher new-car sticker prices and weakened demand, with a March Cox Automotive analysis finding a roughly 10.4% rise in suggested retail prices and other coverage pointing to roughly 75,000 manufacturing job losses since January 2025.
  • Advocacy groups and analysts say the tariffs have shifted costs onto consumers, dealers, and suppliers, produced wide-ranging estimates of the total economic toll, and created policy uncertainty that can delay or reshape future investments.