Drugmakers pledge $350B in US to counter Trump tariff threats

Pharmaceutical giants like GSK and Eli Lilly are ramping up US investments to reduce risks from potential Trump administration tariffs on imported medicines.

GSK announced a $30 billion plan for research, development, and supply-chain upgrades, including a $1.2 billion factory outside Philadelphia.

Eli Lilly revealed a $5 billion manufacturing plant in Virginia to produce monoclonal antibodies and bioconjugates, creating 650 permanent jobs and employing 1,800 construction workers.

A Wall Street Journal tally shows more than a dozen drugmakers have pledged over $350 billion in US investments this decade. Johnson & Johnson plans to invest $55 billion over four years, while AstraZeneca has committed $50 billion by 2030.

Analysts say relocating production could reduce profit hits to 4%, compared with a 7% cut if companies continued to manufacture abroad. The investments also aim to prevent Covid-style supply disruptions.