J&J Commits $2 Billion To US Manufacturing Expansion Amid Threat Of Drug Tariffs

Johnson & Johnson JNJ is set to invest $2 billion in its North Carolina facilities, expanding its U.S. manufacturing operations. This move comes in response to potential drug import tariffs proposed by the Trump administration.

Trump's 250% Pharma Tariff Spurs Domestic Drug Manufacturing

J&J announced its investment on Thursday, as reported by Reuters. The company aims to bolster its U.S. manufacturing presence in light of the looming drug import tariffs proposed by the Trump administration. This decision aligns with similar moves by other major pharmaceutical companies, including Eli Lilly LLY and AstraZeneca AZN.

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The proposed tariffs, which could start small and eventually reach 250%, have prompted major drugmakers to increase their U.S. footprint. J&J has entered a 10-year agreement with Fujifilm Biotechnologies to expand its North Carolina manufacturing facility, creating approximately 120 new jobs.

Further expansion plans for additional manufacturing facilities in the U.S. and the enlargement of current U.S. sites will be announced in the coming months. In March, J&J had declared it would increase U.S. investments by 25% to over $55 billion over the next four years, including a separate plant in Wilson, North Carolina.

Biogen, AstraZeneca Boost US Investment

Trump’s plan to impose tariffs on the pharmaceutical sector, potentially reaching 250%, has spurred a wave of investment in domestic manufacturing by major drugmakers.

In July, Biogen Inc. BIIB announced that it will invest an additional $2 billion to expand its manufacturing operations in North Carolina's Research Triangle Park (RTP). To date, the company has invested about $10 billion in its North Carolina facilities, including over $3 billion in recent years. The new funding is intended to support the advancement of Biogen's late-stage clinical pipeline.

Similarly, AstraZeneca plans to invest $50 billion in the U.S. by 2030, including a new drug facility in Virginia focused on its metabolic and weight-loss treatments. With expanded manufacturing and R&D operations, the company aims to generate half of its projected $80 billion revenue from the U.S. market by 2030.

The complex supply chains of drugmakers make it difficult to predict which companies will be most affected by these tariffs.

Benzinga's Edge Rankings place Johnson & Johnson in the 69th percentile for momentum and the 42nd percentile for growth, reflecting its average performance. Check the detailed report here.

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