Johnson & Johnson invests $55 billion in US factories to avoid Trump tariffs
Kyiv • UNN
Johnson & Johnson invests $55 billion in US factories to avoid Trump tariffs. The company plans to build four factories, one of which is in Wilson, North Carolina.
Johnson & Johnson plans to spend more than $55 billion to build four factories in the United States. Due to Donald Trump's announcement of increased import duties, businesses are forced to expand their production inside the country in order to avoid a shortage of medicines. This is reported by Reuters, writes UNN.
Details
J&J reported that one of the new factories will be located in Wilson, North Carolina, where the pharmaceutical giant has officially started operations. The company is expected to invest more than $2 billion in the enterprise, which will create 5,000 jobs during construction and more than 500 positions throughout the state. It will focus on the production of drugs used to treat cancer, immune and neurological diseases.
The company has not yet disclosed where the other three factories will be built. The manufacturer of medicines and medical devices stated that their investments increased by 25% compared to the last four years.
Last month, drugmaker Eli Lilly also said it would spend at least $27 billion on new U.S. plants over the next five years, as it anticipates problems with drug supplies due to higher import duties.
Pfizer and other companies that operate large factories outside the United States may also be at risk. Trump, who promised to increase domestic production during the election campaign, has stepped up pressure on drug manufacturers to move drug production to the United States since taking office.
J&J, the world's largest drugmaker by revenue, said it already has more manufacturing capacity in the U.S. than in any other country. However, it plans to expand its facilities in the US and build new research and development infrastructure.
Apple also stated that the company plans to spend $5 billion in the US over the next four years, but analysts said some of that includes current commitments.
Reminder
Earlier, UNN wrote that the European Union postponed the introduction of duties on American goods, as a response to Trump's duties, until mid-April 2025. This will allow time for negotiations and possible adjustments to the list of goods.
