Johnson & Johnson (JNJ) plans to increase its US investments by 25% over the next four years, with a total figure of $55 billion. The move comes as a threat of drug import duties from the Trump administration compels companies to expand their manufacturing operations domestically.
The pharmaceutical giant has outlined plans to build four new plants in the US, including one in Wilson, North Carolina, where it broke ground earlier this year. J&J already has more manufacturing facilities in the US than in any other country and plans to expand existing sites and build new research infrastructure.
The 25% increase is compared to the company’s investments in the past four years. At least two investors said most of these investments were already planned, including a portion of regular annual R&D and IT spending.
US companies such as Eli Lilly and Apple are investing in domestic production amid Trump administration’s push to manufacture locally. J&J’s move is seen as an attempt to lobby for a tariff exemption and to mitigate the impact of potential tariffs on pharmaceutical imports.
The proposal includes new commitments, with some investors suggesting that even if there is a tariff deal, the era of free trade and unrestricted globalization is over.
Source: https://www.reuters.com/business/jj-plans-invest-more-than-55-billion-us-over-next-four-years-2025-03-21