Toyota Motor is planning to spend ¥12.5 billion ($88 million) at an engine factory in West Virginia to boost production of gas-electric hybrid vehicles, an effort to widen its manufacturing footprint in the United States as the administration of U.S. President Donald Trump moves to impose tariffs on auto imports.

The Japanese carmaker is earmarking the funds to increase production of hybrid transaxles for next-generation hybrids at the Buffalo, West Virginia, plant by late 2026, bringing total investment at the facility to more than $2.8 billion, it said in a statement Wednesday. The spending will secure the continued employment of some 2,000 workers at the factory, but a Toyota spokesman said it won’t result in any new jobs.

Trump singled out Toyota in remarks he made when announcing planned tariffs earlier this month targeting Japan and dozens of other nations. A new duty on imported auto parts is set to go into effect on May 3.

Transaxles are used to transfer power among key components such as the engine, electric motor and wheels in fuel-efficient hybrid vehicles, demand for which is surging. In the first three months of the year, Toyota’s sales of hybrids in the U.S. grew 40% from a year ago and accounted for more than half of all deliveries. The hybrid version of its best-selling RAV4 is one of the most popular vehicles in its fleet.

The Buffalo plant began making transaxles in 2020, becoming the first Toyota facility in North America to do so. They are used in U.S.-assembled vehicles such as the Camry sedan, Corolla Cross crossover, Highlander SUV, Sienna minivan and two Lexus models. The company aims to grow its transaxle output capacity in West Virginia by more than one-quarter to 609,000 a year, up from 480,000 units currently, the spokesman said.