financetom
Business
financetom
/
Business
/
Lilly plans to invest $27 billion in new US plants as Trump threatens pharmaceutical tariffs
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Lilly plans to invest $27 billion in new US plants as Trump threatens pharmaceutical tariffs
Feb 26, 2025 6:55 AM

Feb 26 (Reuters) - Eli Lilly ( LLY ) plans to spend at

least $27 billion to build four new manufacturing plants in the

U.S., the drugmaker said at a Washington press conference on

Wednesday, as it grapples with the threat of drug import duties

from the Trump administration.

The new plants will be built over the next five years, and

are expected to create more than 3,000 jobs for skilled workers

like engineers and scientists as well as 10,000 construction

jobs, the company said.

Lilly said it will announce the locations of the sites later

this year.

The announcement comes less than a week after U.S. President

Donald Trump met with chief executives from major drugmakers,

including Lilly CEO David Ricks, to discuss industry concerns

such as tariffs on drug imports.

Trump, who campaigned on a promise to boost domestic

manufacturing, has been piling pressure on drugmakers since

taking office to move medicine production to the U.S. He

suggested last week that he could impose a 25% duty on

pharmaceutical and other imports.

Other sectors are also making manufacturing announcements.

Earlier this week, Apple said it would spend $500 billion in the

U.S. over the next four years, but analysts said some of that

included current commitments.

The U.S. and its major trading partners have agreed to

reciprocal tariff elimination for pharmaceutical products and

chemicals used in drug production for the past 30 years,

according to the U.S. Trade Representative's office.

Despite telling Republicans in a White House meeting earlier

this month that he was considering such an exemption, Reuters

reported, Trump has yet to rule them out.

Ricks said in a statement that Lilly's new investment plans

would help reinvigorate U.S. manufacturing, and that tax-cutting

legislation introduced in Trump's first term has been

foundational to the drugmaker's domestic manufacturing

investments.

Lilly, which has become the world's most valuable healthcare

company worth more than $855 billion, said it has already

committed $23 billion to boosting its U.S. manufacturing

footprint since 2020. Its Wednesday announcement brings that

total to more than $50 billion.

Three of Lilly's new plants will be used to manufacture

pharmaceutical raw ingredients, while the fourth will make

injectable medicines, the drugmaker said.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Top Premarket Decliners
Top Premarket Decliners
Jul 28, 2025
07:46 AM EDT, 07/28/2025 (MT Newswires) -- ATAI Life Sciences ( ATAI ) shares were 10% lower pre-bell Monday after saying Friday that its phase 2b trial of inidascamine in patients with cognitive impairment associated with schizophrenia failed to achieve its primary endpoint. Kazia Therapeutics ( KZIA ) stock was down 10% following a 1.4% loss in the previous session....
Google agrees $36 million fine for anti-competitive deals with Australia telcos
Google agrees $36 million fine for anti-competitive deals with Australia telcos
Aug 17, 2025
SYDNEY, Aug 18 (Reuters) - Google agreed on Monday to pay a A$55 million ($35.8 million) fine in Australia after the consumer watchdog found it had hurt competition by paying the country's two largest telcos to pre-install its search application on Android phones, excluding rival search engines. The fine extends a bumpy period for the Alphabet-owned internet giant in Australia,...
Market Chatter: Interactive Brokers Weighs Launch of Customer Stablecoin
Market Chatter: Interactive Brokers Weighs Launch of Customer Stablecoin
Jul 28, 2025
07:51 AM EDT, 07/28/2025 (MT Newswires) -- Interactive Brokers ( IBKR ) is considering a stablecoin for customers, Reuters reported Monday, citing an interview with founder Thomas Peterffy. The company is reportedly also working on enabling round-the-clock stablecoin funding for brokerage accounts and may allow third-party tokens depending on issuer credibility. Peterffy expressed skepticism about crypto's underlying value but acknowledged...
Canada's TD Bank names new chair to steer oversight push
Canada's TD Bank names new chair to steer oversight push
Jul 28, 2025
July 28 (Reuters) - TD Bank has named independent director John MacIntyre as the new chair of its board, as the Canadian lender turns to a new guard to bolster oversight and reassure investors. MacIntyre will succeed Alan MacGibbon, who will retire on September 1, following a stint that lasted more than a year, the bank said on Monday. The...
Copyright 2023-2026 - www.financetom.com All Rights Reserved