Auto Tariffs Failing to Spur Broad U.S. Production Shift, Toyota the Notable Outlier
More than a year into auto tariffs, automakers have not broadly shifted production to the United States; Toyota is the main exception, moving some Tacoma assembly to San Antonio, while most other brands keep production in Mexico or rely on imports. High costs, long timelines to build new plants, and policy uncertainty—plus ongoing USMCA renegotiation concerns—make mass re-shoring unattractive. Tariffs have dented earnings (Toyota about $8.4 billion in duties; GM $3.1B; Ford $1B), but the cost and risk of expanding U.S. facilities, combined with the possibility of policy reversals, keep the status quo as demand for vehicles remains strong.
