Pharma

J&J invests $55B in U.S. manufacturing amid potential Trump-era tariffs

After Trump threatened 25% tariffs on pharma imports, J&J became the latest pharma company to announce investments in the U.S.

Lecia Bushak

March 21, 2025

1:10 pm

Credit: Getty Images / Mario Tama

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Johnson & Johnson became the latest pharma giant to announce a sizable investment in its U.S. manufacturing capabilities amid President Donald Trump’s tariff war.

J&J announced Friday morning that it will spend $55 billion to develop new manufacturing facilities in the U.S. over the next four years.

The drugmaker said it was breaking ground on its new North Carolina facility, which encompasses 500,000 square feet and will create some 500 pharma jobs in the state.

The increased investment in domestic manufacturing represents a 25% boost compared to the last four years, the company noted. J&J views the plan as building upon its previous investments following the passage of the Tax Cuts & Jobs Act in 2017.

In addition to the facility in Wilson, North Carolina, the U.S. investment boost will include the expansion of several current sites across J&J’s innovative medicine and medtech units.

The company said it will invest in R&D infrastructure across oncology, neuroscience, immunology, heart disease and robotic surgery.

“Our increased U.S. investment begins with the ground-breaking of a high-tech facility in North Carolina that will not only add U.S.-based jobs but manufacture cutting edge medicines to treat patients in America and around the world,” J&J CEO Joaquin Duato said in a statement.

J&J’s move toward U.S. investment comes after Trump proposed a 25% tariff on pharma products, aiming to encourage domestic manufacturing.

Last month during a closed-door meeting, Trump threatened the CEOs of several major drugmakers – including Merck, Pfizer and Eli Lilly – with tariffs if they didn’t move more of their manufacturing to the U.S., Bloomberg reported.

Other pharma companies have taken note of the tariff threats.

Lilly recently announced it would spend $27 billion on U.S. manufacturing, commencing with building plans on four domestic manufacturing plants this year.

Additionally, Pfizer CEO Albert Bourla said his company would be prepared to move its international manufacturing operations to the U.S. if tariffs are imposed.

J&J projected the total U.S. economic impact following its latest investment would reach more than $100 billion per year.

In addition to tariffs, the pharma industry is bracing for the second round of Medicare negotiations, which is set to start this year.

During the same meeting with Trump in February, the drugmaker CEOs as well as lobbying group PhRMA had hoped to convince Trump to weaken Medicare’s drug negotiation program.

However, Trump did not commit to watering it down, Bloomberg reported, suggesting his pro-business stance may not fully apply to pharma.

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J&J invests $55B in U.S. manufacturing amid potential Trump-era tariffs

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