Novartis, a Swiss pharmaceutical company, announced its plans to invest $23 billion in constructing and expanding 10 facilities in the United States amid concerns about potential drug import tariffs from the Trump administration. The investment includes the development of six new manufacturing plants, some of which will focus on producing raw pharmaceutical ingredients, and a new research and development center in San Diego, California. Over the next five years, these new facilities and expansions are expected to generate over 1,000 skilled job opportunities for engineers and scientists, along with 3,000 support staff and construction jobs.

The company has not finalized the locations for its new manufacturing plants. Novartis' decision to make this investment comes shortly after President Trump hinted at imposing significant tariffs on pharmaceutical imports, causing a decline in drugmakers' stock prices. Despite the potential impact of tariffs, Novartis CEO Vas Narasimhan emphasized that the primary motivation behind the investment is to localize drug production for the American market rather than relying on imports.

Novartis aims to solidify its presence in the U.S. pharmaceutical market, the largest globally, through a strategy that prioritizes U.S.-based operations. Other American drug manufacturers like Eli Lilly and Johnson & Johnson have also announced significant investments in U.S. manufacturing facilities this year. Trump's administration has been urging pharmaceutical companies to shift production to the U.S., aligning with his campaign promise to enhance domestic manufacturing. Establishing a new production plant in the U.S. can take between 5 to 10 years and cost around $2 billion due to regulatory requirements, as highlighted by industry trade group PhRMA.