Big Pharma, over 500 billion in investments to avoid US tariffs
From AbbVie’s 100 billion to Pfizer and Merck’s 70 billion, from AstraZeneca’s 50 billion to GSK’s 30 billion: pharmaceutical companies’ investments in the country continue to rise
Key points
Major multinational pharmaceutical companies are accelerating the localisation of production in the United States at an unprecedented rate, with total commitments exceeding $500 billion in investment in research, development and production capacity. This trend is fuelled by the prospect of tariffs of up to 100% on branded medicines, introduced by the Trump administration with exceptions linked to pricing and domestic production. According to an analysis based on Reuters data and industry research, the reshoring movement involves the major global players and aims to reduce dependence on international supply chains, whilst strengthening the industrial presence in the United States.
Over $500 billion in new commitments
Major global pharmaceutical companies are significantly expanding their manufacturing presence in the United States, increasing investment and stockpiles in response to the trade restrictions announced by the Trump administration. The plan involves the introduction of tariffs of up to 100% on branded medicines, unless prices are reduced or production is relocated to the US.Although the application of these measures has been temporarily suspended for companies investing in the United States, the announcement alone has already triggered a rapid acceleration of industrial projects, pricing agreements and direct-to-consumer sales strategies. In this context, some big pharma companies have secured multi-year exemptions in exchange for commitments on pricing and investment, including through the government platform TrumpRx.gov, whilst others have announced multi-billion-dollar plans to expand production capacity in the US.
The total investment announced by the big pharma companies continues to rise. In July 2025, the total amount was an estimated 316 billion for the 10 groups, both American and foreign, with commitments exceeding 10 billion each. Today, it exceeds $500 billion, spread over a multi-year period and concentrated primarily on new production facilities, expansions of existing sites and research infrastructure.
The strategy of major American and international pharmaceutical groups is geared towards three main objectives: avoiding exposure to tariffs on imports; ensuring the continuity of supply chains; and strengthening access to the US market, which is now central to the sector’s revenues.
US pharmaceutical companies
One of the most notable examples is Pfizer, which signed an agreement with President Donald Trump pledging to invest $70 billion in research and development and domestic manufacturing, in exchange for a three-year moratorium on tariffs. The same figure applies to Merck, which is developing an investment plan worth over $70 billion, including a new $3 billion facility in Virginia, a $1 billion plant in Delaware for biologics and oncology, a $1 billion expansion in North Carolina and further investment in the animal health division in Kansas.
