A growing number of pharmaceutical companies are sharing plans to ramp up domestic manufacturing capacity amid recent tariffs imposed by the Trump administration.
Here are five things to know:
- Since the beginning of President Donald Trump’s second term, multiple corporations have shared plans to expand production capabilities in the U.S., CBS News reported April 23.
- In March, Johnson & Johnson announced a $55 billion investment in U.S. manufacturing. The White House praised the move as a “massive victory in President Donald J. Trump’s unrelenting pursuit of American manufacturing dominance.”
- Swiss pharmaceutical company Roche also announced plans to commit $50 billion toward U.S. manufacturing, expanding existing manufacturing facilities in California, Indiana, Pennsylvania and Massachusetts. In addition, Eli Lilly is building two new plants in Indiana, committing $2.1 billion to the effort and Amgen is opening a new facility in Ohio.
- President Trump announced April 9 a 90-day pause on tariffs for certain trading partners, though on April 8 said he was still serious about imposing tariffs on pharmaceuticals to boost U.S. manufacturing. In addition, the tariff on goods from China was raised to 145%, following the country’s retaliation tariff on U.S. imports.
- Tom Kraus, vice president of government relations of the American Society of Health-System Pharmacists told Becker’s that domestic manufacturing can take three to four years to build and the current tariffs could increase risk of medication shortages. Although the levies don’t yet apply to finished drugs or active ingredients, starting materials sourced from China are not exempt.
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