AstraZeneca Commits $50 Billion Investment in US to Dodge Trump’s Tariff Threats

AstraZeneca stated that the investment will fund a new drug manufacturing facility in Virginia and cell therapy manufacturing in Maryland, Massachusetts, California, Indiana, and Texas.

AstraZeneca plans to invest $50 billion to increase production and research capacity in the United States (US) by 2030. It is the latest influential investment by a pharmaceutical company reacting to President Trump’s tariff policies.

The company stated that the investment will fund a new drug manufacturing facility in Virginia, expand its research and development (R&D) and cell therapy manufacturing in Maryland, Massachusetts, California, Indiana, and Texas.

It will also support ongoing investments in new drugs and upgrade the Anglo-Swedish pharmaceutical company’s clinical trial supply network in the United States.

The company stated on Monday that its expansion supports its goal of generating annual revenue of $80 billion by 2030, with half of that from the United States.

British-Swedish multinational pharmaceutical and biotechnology company joins a long list of companies making investments in the United States just to avoid punitive tariffs.

Technology companies are also investing in the US due to political pressure. For instance, Apple announced it would invest $500 billion within the following four years, including a giant factory in Texas for artificial intelligence (AI) servers.

Before Trump returned to his office, the company was focusing on the US market, which is the largest in the world with a $635 billion valuation, and it accounted for over 40% of its annual revenue in 2024.

As Trump threatens to impose tariffs of 200% on pharmaceuticals made outside the US and aims to increase domestic manufacturing, the company is expanding its US footprint. Historically, trade disputes have not affected the industry.

Instead of importing active ingredients or finished medications, Trump has called on pharmaceutical companies to produce more of the drugs they sell in the United States within the country. He is also pressuring Americans to lower drug prices to match other countries.

CEO Pascal Soriot announced plans in Washington, stating that he believes medicine prices should rise in other areas and level the field with other countries that contribute more to research and development costs. He added that the United States cannot construct or fund R&D for the whole globe.

US Commerce Secretary Howard Lutnick is leading the investigation into pharmaceutical imports that pave the way for new tariffs.

In a statement issued by AstraZeneca, Lutnick said that Americans have been dependent on foreign suppliers for essential pharmaceutical products for decades. President Trump and his new tariff policies focused on eliminating this structural weakness.

While Trump has repeatedly used tariffs on multiple occasions, he signalled earlier this month that companies would get a year to 18 months to absorb them before any taxes take effect.

The company stated that it timed the investment to coincide with the US policy environment, while part of the intention was to build future medical infrastructure.

Virginia State Governor Glenn Youngkin, a strong Trump supporter who has backed the administration’s tariff policies, was present when the company made the announcement.

The new Virginia factory, the company’s biggest single manufacturing investment, will produce active ingredients for its experimental weight-loss medications, including an oral PCSK9 inhibitor for cholesterol control and its oral GLP-1 candidate.

The company stated the investment could create thousands of additional jobs, but declines to provide specific figures. It has roughly 18,000 employees in the United States and about 90,000 globally.

In January, it cancelled plans to invest 450 million pounds ($607.1 million) in its vaccine manufacturing facility in northern England, citing a reduction in government support.

The company was considering shifting its stock market listing from London, where it is the most valuable company on the exchange with 159 billion pounds, to the United States. The company did not respond to requests for comment.