Novartis Plans $23B Investment in US Facilities as Trump Threatens Pharma Tariffs

Swiss pharmaceutical giant Novartis (NVS) stated that it plans to invest $ 23 billion in the construction and expansion of 10 American features as a drug manufacturer for a possible tariff from the Trump administration.

Planned investment includes six new manufacturing plants in the next five years and a San Diego-based research and development sites. Two of the six plants, which Novartis stated that can produce cancer treatments, is slapped to be built in Florida and Texas.

Novartis said that the projects expect more than 4,000 American jobs to be produced, including 1,000 roles in the company.

Tariff comes between uncertainty

Following the announcement of Novartis, President Donald Trump said earlier this week that his administration “will soon announce a major tariff on pharmaceuticals.”

Trump said in a dinner organized by the National Republican Congress Committee, “We are going to tariff our pharmaceuticals, and once we do so that they are coming back to our country because we are in the big market,” Trump said in a dinner organized by the National Republican Congress Committee.

Novartis CEO Vas Narasimhan said that tariffs were an idea, but not a driving factor behind investment, Roots Informed on Thursday.

Novartis shares were slightly changed on Thursday amid a decline in broad market. The stock increased by about 6% in 2025 from nearly Thursday. (Reading Investopedia Live coverage of today’s market action.)

In February, rival drug manufacturer Ellie Lily (LLY) said she would invest at least $ 27 billion to create four new pharmaceutical manufacturing site in the US after a month, Johnson & Johnson (JNJ) announced a plan to increase its domestic investment to $ 55 billion in the next four years.