Drugmakers Boost U.S. Manufacturing Amid Tariff Threats
With potential U.S. tariffs looming, global pharmaceutical companies are significantly investing in domestic manufacturing. Major players like Eli Lilly, Roche, and AstraZeneca are leading efforts by expanding facilities and securing inventories to mitigate supply-chain risks and reassure investors.
Global pharmaceutical companies are racing to bolster their U.S. manufacturing operations as the Trump administration considers imposing significant tariffs on drug imports. Firms with substantial business ties to the UK, EU, South Korea, and Japan are in a relatively stable position thanks to tariff caps of around 15%.
As trade negotiations continue, pharmaceutical businesses are making strategic moves to mitigate risks and secure investor confidence. Notably, Eli Lilly is planning a $27 billion investment in new U.S. facilities, while Johnson & Johnson intends to increase its U.S. investments by 25% over four years, totaling $55 billion.
Roche has declared a massive $50 billion investment across several states and plans further expansion, while AstraZeneca and Novartis are also significantly enhancing their U.S. production capabilities to cushion against potential tariff impacts.
(With inputs from agencies.)
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