Toyota is investing its $600 million in one its plants in Princeton, Indiana. The news came after Donald Trump's slammed the auto giant's deal with Mexico in bringing its investments to Mexico. Trump pressed local and foreign automakers to bring back jobs to the U.S. else face higher tariffs and border taxes.

Toyota said that the strategy aims to localize manufacturing where it is sold. The investment will boost SUV fabrication in VP Mike Pence's home State of Indiana. Toyota Motor Corporation President Akio Toyoda said that the investment is part of a $10 billion on capital investment package for the next five years to the United States, as announced last January 9, 2017, reported by Japan Times.

Toyota management said that the plant enhancement will produce an additional 40,000 Highlander vehicles per year. Production for these vehicles will start in 2019. The Princeton, Indiana Plant produced 400,000 vehicles last year and presently has 5,300 employees.

Air conditioner and Furnace maker Carrier also gained ground and canceled the closure of one of its plants and transfer to Mexico where labor is cheap. Instead, management decided the option to keep more than half of its labor and to keep the plant in operation. A $7 million government incentive is one of the reasons why Carrier, with its mother company, United Technologies, stayed in Indianapolis, New York Times reported.

Mixed with threats and incentives, investors have more advantages on their side cooperating with the US Government. Threats of increased tariff are heavier than incentives on land leasing, electricity and tax breaks offered by the nation. After all their main market is the American people.

Ford Motors also followed after Japan's decision to invest in Indiana. It added jobs at its manufacturing facility in Michigan. Instead of putting up a factory in Mexico, it opted the US state instead with the threat of higher tax imposition of products made in Mexico, reports Yahoo News.