Swiss pharmaceutical giant Novartis has announced a $23 billion investment to expand its U.S. operations, a move following President Trump’s recent pledge to impose significant tariffs on imported drugs. The investment includes constructing six new manufacturing plants and a research and development center in San Diego, aiming to create over 4,000 jobs.
In a press release, Novartis stated: “This commitment enables Novartis to expand on its current manufacturing, research and technology presence across the country with 10 facilities, including 7 brand new facilities, creating nearly 1,000 new jobs at Novartis and approximately 4,000 additional US jobs.”
Two of the new facilities, focusing on next-generation cancer therapies, are planned for Florida and Texas. The locations of the remaining four plants, which will produce biologics and other pharmaceutical components, have not yet been determined.
President Trump has indicated that pharmaceutical imports will soon face “major” tariffs as part of efforts to drive manufacturing back to the U.S. He stated, “We’re going to be announcing very shortly a major tariff on pharmaceuticals.”
Novartis CEO Vas Narasimhan acknowledged that tariffs were a consideration but emphasized that the primary goal is to manufacture all U.S.-sold drugs domestically. He stated, “We believe we can manage the tariffs—though of course they will be very painful—so while that is a factor (behind this investment), it’s not the driving factor.”
The announcement aligns with broader industry efforts to localize pharmaceutical production in response to potential tariffs. Competitors such as Eli Lilly and Johnson & Johnson have also committed to multi-billion-dollar expansions of their U.S. operations.
