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Novartis announced on Thursday that it will invest $23 billion in the U.S. over the next five years.
The announcement came two days after President Donald Trump called for tariffs on imported drugs.
“As a Swiss-based company with a significant presence in the US, these investments will enable us to fully bring our supply chain and key technology platforms into the US to support our strong US growth outlook. These investments also reflect the pro-innovation policy and regulatory environment in the US that supports our ability to find the next medical breakthroughs for patients,” said Vas Narasimhan, CEO of Novartis.
“We are prepared for shifts in the external environment and fully confident in our 2025 guidance, mid- to long-term sales growth outlook and 2027 core margin guidance of 40%+,” he continued.
The company stated that the investments will include “10 facilities, including 7 brand new facilities, creating nearly 1,000 new jobs at Novartis and approximately 4,000 additional US jobs.”
Trump addressed the plan to increase tariffs on imported drugs during a dinner of the National Republican Committee on Tuesday night.
“We’re going to be announcing very shortly a major tariff on pharmaceuticals,” he said at the dinner. “And when they hear that, they will leave China. They will leave other places because they have to sell — most of their product is sold here and they’re going to be opening up their plants all over the place.”
Trump expressed concerns that the production of many drug ingredients has moved to China and other countries. The plan is in addition to increased tariffs on China this week and 10 tariffs on other nations that started April 2.
Novartis joins a growing list of companies expanding investment in the U.S. since Trump’s return to office in January. For example, Apple announced in February that it will invest $500 billion in the U.S. over the next four years, adding 20,000 American jobs and building a factory in Texas by 2026.
The well-known iPhone and computer maker will work with Hon Hai Precision Industry’s Foxconn to build a 250,000-square-foot facility in the Houston area to assemble servers to power Apple’s AI efforts.
“APPLE HAS JUST ANNOUNCED A RECORD 500 BILLION DOLLAR INVESTMENT IN THE UNITED STATES OF AMERICA. THE REASON, FAITH IN WHAT WE ARE DOING, WITHOUT WHICH, THEY WOULDN’T BE INVESTING TEN CENTS. THANK YOU TIM COOK AND APPLE!!!” Trump posted to Truth Social.
