AstraZeneca To Invest $50 Bn In The US As Tariff Threat Looms
The funds will boost its manufacturing and research operations in the US, including the construction of a multi-billion-dollar factory in Virginia, the company said in a statement.
"Today's announcement underpins our belief in America's innovation in biopharmaceuticals," chief executive Pascal Soriot said in a statement.
US President Donald Trump has opened the door to potential tariffs targeting pharmaceuticals, which had up to now benefited from exemptions to his sweeping levies on imports from trading partners.
He ordered an investigation into pharmaceutical imports, suggesting that levies could reach up to 200 percent.
The United States is a key market for the pharmaceutical industry, and AstraZeneca said it expects 50 percent of its revenue to come from the US by 2030.
AstraZeneca has already begun transferring part of its European production to the United States, it announced in April.
While the drugmaker could become exposed to US levies on its European-made products, Soriot has said that the impact would be limited due to the ongoing shift in production.
Other major pharmaceutical companies, which had been exempt from tariffs for 30 years, have in recent months begun shifting investment and production to the United States.
Swiss pharmaceutical giants Roche and Novartis and France's Sanofi have all announced multi-billion-dollar investments in the US.
"For decades, Americans have been reliant on foreign supply of key pharmaceutical products," US Commerce Secretary Howard Lutnick said in a statement.
He added that the new tariffs are focused on "ending this structural weakness".
Tuesday's announcement included a new factory in Virginia, which will be the company's "largest single manufacturing investment".
It adds to AstraZeneca's previously announced $3.5 billion investment in the US by 2026.
"Soriot implied... that AstraZeneca wasn't wedded to a particular country and that it would invest wherever it made financial sense," said AJ Bell investment director Russ Mould.
However, he noted that "the more business it does in the country, the greater the likelihood that investors might push for AstraZeneca to switch its main stock listing to the US."
The pharmaceutical company abandoned plans earlier in the year to build a GBP450 million ($606 million) vaccine plant in the UK city of Liverpool, citing timing issues and a reduction in subsidies offered by the government.
The move "was the big clue that it was losing patience with the UK government," said Mould.
AstraZeneca reported a first-quarter profit rise of over 30 percent in April, noting that 40 percent of its revenue was generated in the US.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
DW
an hour ago
- DW
US and EU reach trade deal to avoid tariffs – DW – 07/27/2025
EU chief Ursula von der Leyen has managed to negotiate a 15% US tariff. The United States and the European Union on Sunday reached a trade deal, ending a months-long transatlantic trade standoff. "We have reached a deal. It's a good deal for everybody," US President Donald Trump told reporters after talks with the European Commission President Ursula von der Leyen in Scotland. Ahead of the crunch talks, Trump gave "a good 50-50 chance" on Friday for a deal with the European Union to be reached. Brussels was seeking to finalize a trade agreement with Washington before the August 1 deadline. The trade pact means the bloc would avoid the 30% tariffs that Trump has threatened on all goods from the EU. Most EU goods already face a 10% tariff, with levies of 25% on cars and car parts and 50% on steel and aluminum. On Sunday, US Commerce Secretary Howard Lutnick said the August 1 deadline was firm. "No extensions, no more grace periods. August 1, the tariffs are set, they'll go into place, Customs will start collecting the money and off we go," Lutnick told the US broadcaster Fox News. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video European negotiators were aiming for a baseline levy of around 15 percent on EU exports to the US — the level secured by Japan. Any deal will need to be approved by all member states. EU ambassadors, on a visit to Greenland, were updated on the negotiations by the Commission on Sunday morning, and would meet again after any agreement.
DW
3 hours ago
- DW
Trump meets EU chief in push to clinch trade deal – DW – 07/27/2025
EU chief Ursula von der Leyen is hoping to strike a trade deal with the US before August 1, to avoid a transatlantic trade war. Trump describes the prospect of an agreement as "50-50." US President Donald Trump is meeting with the European Commission President Ursula von der Leyen in Scotland on Sunday, as Brussels seeks to finalize a trade agreement with Washington before the August 1 deadline. Ahead of the meeting, Trump gave "a good 50-50 chance" on Friday for a deal with the European Union to be reached. Von der Leyen has been pushing hard for a trade pact that would see the bloc avoid the 30% tariffs that Trump has threatened on all goods from the EU. Most EU goods already face a 10% tariff, with levies of 25% on cars and car parts and 50% on steel and aluminum. On Sunday, US Commerce Secretary Howard Lutnick said the August 1 deadline was firm. "No extensions, no more grace periods. Aug. 1, the tariffs are set, they'll go into place, Customs will start collecting the money and off we go," Lutnick told the US broadcaster Fox News. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video According to an EU diplomat briefed ahead of the meeting, set for 4:30 p.m. (1530 GMT), key issues still need to be hammered out. "A political deal is on the table — but it needs the sign-off from Trump, who wants to negotiate this down to the very last moment," the diplomat told AFP. European negotiators are aiming for a baseline levy of around 15 percent on EU exports to the US — the level secured by Japan. Any deal will need to be approved by all member states. EU ambassadors, on a visit to Greenland, were updated on the negotiations by the Commission on Sunday morning, and would meet again after any agreement.
DW
4 hours ago
- DW
Protest against Israeli cruise ship sparks debate in Greece – DW – 07/27/2025
Protesters on the island of Syros said it was unacceptable to welcome Israeli tourists while Palestinians in the Gaza Strip were starving and decried the increasingly close relationship between Israel and Greece. "We owe an apology to these friends of Greece who chose to spend their holidays here and were forcibly denied it by some," Greek Health Minister Adonis Georgiadis wrote on the social media platform X. "Our country remains hospitable to all and antisemitism has no place here!' His comments came in response to last Tuesday's protests on the island of Syros, where around 300 demonstrators assembled at the island's port carrying Palestinian flags and a large banner that said, "Stop the genocide." They were there to meet the MS Crown Iris, a ship owned by the Israeli cruise line, Mano Maritime. The protest was organized by locals who wanted to show that it wasn't acceptable to greet Israeli tourists while Palestinians in Gaza were starving, due to Israel's blockade on aid entering the occupied territory. Around 1,600 passengers were on the ship, which had set sail from Israel on Sunday. Some aboard reacted angrily to the portside protest, waving Israeli flags and even insulting the demonstrators, calling out "may your village burn," a slogan popular with Israeli right-wing extremists. The cruise line ultimately decided the passengers shouldn't disembark at Syros and continued on its journey to Cyprus. It's not often this kind of thing happens in Greece, where there have been fewer pro-Palestinian demonstrations than in many other European countries. But every now and again, there has been some anti-Israel action in the seafaring EU nation. On July 16, dockworkers and activists tried to prevent the unloading of steel meant for military purposes in Israel. The activists said the cargo was transferred from one ship, the Ever Golden, to another, the Cosco Shipping Pisces, in an attempt to keep the cargo "under the radar." The dockworkers' union said that they wouldn't allow the port to become a base for any military actions. There were similar protest actions in October 2024, and these are expected to continue. Meanwhile, the episode on Syros has led to heated debate in Greece. Many locals say the protest was racist and some called the demonstrators "shameless fascists." Others supported the demonstrators, saying the Israeli tourists should be informed of what their government doing in Gaza. Those who are firmly on Israel's side have accused the others of antisemitism. This is despite the fact that among those Greeks are some right-wing extremists who are actually traditionally antisemitic themselves. Now, however, they admire Israel's military strength and see Israel as an ally, mostly against Turkey, but also against Muslims in general, whom they accuse of trying to change the European way of life. The pro-Palestinian group is mostly left wing, who insist their criticism has nothing to do with antisemitism. In fact, they say that antisemitism is being worsened by Israeli actions in Gaza. Opinion polls in Greece suggest that just under half of all locals are neutral about the conflict in Gaza. However, among the other half of the population, those who are not neutral, support for Israel has declined after almost two years of fighting in Gaza. In a survey by the Eteron Institute for Research and Social Change, conducted in late April, interviewees were asked who they most supported in the conflict. Just over 40% answered "neither side." Of the rest, 30% favored the Palestinian side and 17.6% favored Israel. That's a significant change from November 2023 — immediately after the Hamas-led attacks on Israel on October 7 — when 34% supported Israel. Further detailed results show that almost 50% of those Greeks who support the conservative ruling party, New Democracy, also support Israel. Those who prefer the far-right party, Voice of Reason, also support Israel. Among those who support PASOK, a social democratic party, only 12% like Israel while 34% are pro-Palestinian. The rest of the PASOK supporters are neutral. Further left though, of the Greeks who support the local Communist party and other left-wing parties, between 74% and 84% are pro-Palestinian. Greek Prime Minister Kyriakos Mitsotakis, a member of New Democracy, supports Israel without reservation and has called Israeli leader Benjamin Netanyahu "his friend." Mitsotakis actually visited Netanyahu in Israel even after the International Criminal Court issued a warrant for the Israeli leader's arrest for crimes against humanity and war crimes. In June 2025, when Israel was targeted by Iran, civilian Israeli airplanes were allowed to take shelter on Greek islands. Netanyahu's own official plane was parked in Athens. For a long time, Greek Foreign Minister Giorgos Gerapetritis has been trying to maintain a more balanced stance, remaining in contact with Palestinian leadership and insisting on his support for a two-state solution. Along with 28 other countries, including many European nations, Greece did sign the recent resolution calling on Israel to end the conflict in Gaza and fulfill its humanitarian obligations to the civilian population. Still, left-wing opposition politicians maintain their government's position is wrong and issued a joint statement at the end of May, calling on the Greek government to end military cooperation with Israel. Close cooperation between Israel and Greece began long before Mitsotakis became prime minister. The alliance really became closer around 2008. This was solidified by a flurry of visits of heads of state in 2010 and ever since, there's been strategic cooperation between the two nations. Before that time, relations were cooler. Athens was typically pro-Arab and Greece was the only European country to vote against the United Nations resolution of 1947 that effectively led to the founding of the state of Israel. This was due to Athens' ties with the Arab world. Greece did de facto recognize Israel in 1949, but it wasn't until May 1990 that then-Prime Minister Konstantinos Mitsotakis — the father of Greece's current prime minister — officially recognized Israel and diplomatic relations were normalized. At the same time, Mitsotakis also promoted diplomatic relations with Palestinian leadership. Today, the relationship between the two countries is close, especially in terms of economic, energy and military cooperation. For Israelis, Greece remains an attractive vacation destination — if only because of its geographical proximity — and Greek food and music are very popular in Israel. Many Greek artists regularly perform in Israel. Most recently, popular singer Glykeria faced backlash after announcing she would perform view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video
