AstraZeneca to invest $50 billion in US by 2030 amid Trump tariff fears
AstraZeneca CEO Pascal Soriot announced from Washington that the group would invest around $50 billion in the United States over the next five years to expand its production capacity across the Atlantic.
According to the company, this would enable it to reach $80 billion in revenue, with half of that figure generated in the United States.
The investments will support the construction of a new drug manufacturing facility in Virginia and the expansion of existing research centres in Maryland, Massachusetts, California, Indiana, and Texas.
These investments follow a trend observed among other major companies in recent months, such as Roche – which has also signalled plans to invest around $50 billion in the US – as well as Novartis, Sanofi, and Johnson & Johnson. Analysts, however, noted that most of those investments had been in the pipeline for some time.
In Brussels, these announcements heightened fears of a potential exodus of major pharmaceutical companies across the Atlantic.
Trump threatened to impose 200% tariffs
The direction of these investments is largely driven by threats from the Trump administration to impose massive tariffs on the pharmaceutical sector.
In recent months, the US president has repeatedly stated his intention to boost domestic drug manufacturing, citing a significant deficit in this area. One-third of European exports to the US are pharmaceuticals, with the EU generating a €70 billion trade surplus in the sector.
To address this imbalance, Trump threatened as recently as July to impose a 200% tariff on certain medicines, declaring that manufacturers would have "one to two years" to bring production back to the US.
'For decades, Americans have depended on foreign countries for essential pharmaceutical supplies. President Trump and our new tariff policies aim to correct this structural weakness,' commented US Commerce Secretary Howard Lutnick.
'We are proud that AstraZeneca has chosen to relocate a significant portion of its pharmaceutical production,' he added.
While tariffs have played a role in AstraZeneca's decision-making, the company had already prioritised the United States as a key market even before Trump's return to the Oval Office. In 2024, the Anglo-Swedish firm generated 40% of its revenue in the US.
(bms, aw)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euractiv
28 minutes ago
- Euractiv
Lithuania presses NATO to fix air defence gap amid Baltic drone incursions
Vilnius has once again called on its military allies for support in the form of additional air defence capabilities, following a series of drone incursions into its airspace that officials suspect are linked to Russia. On Tuesday, Defence Minister Kestutis Budrys wrote on X that a Russian military drone had "violated Lithuanian airspace" earlier last week. It was "the second such incident in less than a month." Last Friday, the Lithuanian army also discovered what it believes to be a Russian aircraft at a military training base, following a similar incident earlier in the week. Budrys said that he and Foreign Minister Kęstutis Budrys had sent a letter to NATO Secretary-General Mark Rutte 'calling for immediate measures to enhance air defence capabilities in Lithuania accelerate the full implementation of the rotational air defence model.' This request echoes earlier efforts. As Euractiv reported two years ago, the Baltic countries had already been pushing for a rotational model of air defence deployments from NATO allies, rather than occasional or ad hoc support. The renewed plea highlights that, despite heightened European focus on air defence since Russia's full-scale invasion of Ukraine, long-standing gaps in the Baltic region remain unaddressed. Germany, for instance, has sent its Patriot systems to Lithuania. However, Budrys did not specify the timeline requested by Vilnius for setting up a rotation of air systems. Air defence systems are among the most expensive and sophisticated pieces of defence equipment. A single Patriot battery costs around $1 billion, with each missile priced at $4 million. Delivery times are measured in years. Lithuania is located in the Baltic region and borders both Russia's Kaliningrad exclave and Belarus. In an interview with Euractiv, Andris Sprūds, the defence minister of neighbouring Latvia, said that NATO's policing missions in the Baltics should be extended to include drone surveillance, as well as monitoring aircraft. Drones have become a key part of modern warfare since Russia launched its invasion of Ukraine in the winter of 2022. (de)
Euractiv
an hour ago
- Euractiv
Sweden follows the Netherlands in sending multi-million military package to Ukraine
Sweden will send around €238 million worth of equipment to Ukraine, including Patriot missiles and anti-tank ammunition, Swedish Defence minister Pål Johnson announced on Tuesday. The pledge is part of a broader €433 million package jointly coordinated with Denmark and Norway that includes US-made Patriot missile systems and other advanced munitions, largely sourced from existing European stockpiles. The initiative follows a new arrangement under which European allies cover the cost of US defence equipment sent to Kyiv. To accelerate delivery, Washington has promised rapid backfilling of donated systems, though logistical implementation may prove complex. The announcement comes a day after the Netherlands said it would send Patriot systems to Ukraine. Germany is also expected to deliver additional Patriot launchers in the coming days. 'We welcome the US decision to provide equipment to Ukraine, including ammunition for the Patriot air defence system, and that NATO is coordinating the support,' Johnson told the press on Tuesday. Sweden's contribution includes Patriot missiles, HIMARS rocket ammunition, artillery for vehicles and maintenance equipment. The country acquired the US-made Patriot PAC-3 missile defence system in 2021. 'The defence equipment should be available to Ukraine next month', the Swedish defence minister added. Denmark will contribute around €71 million and has expressed willingness to provide more if needed. 'If Ukraine requires additional support later, we are open to considering it,' Danish Defence Minister Troels Lund Poulsen said. Norway has not yet detailed its share of the package. Countries expressing interest in contributing to the joint effort include Germany, Finland, Denmark, Sweden, Norway, the Netherlands, the UK, and Canada, according to NATO chief Mark Rutte. Charles Szumski contributed to reporting. (ap, cs)
Euractiv
an hour ago
- Euractiv
The Brief – Will the dream of free hand luggage get off the ground? Don't bet on it
If you've stressed over buying your cabin bag for your flight home, don't get your hopes up for EU lawmakers settling the issue any time soon. Earlier this year, passengers across the continent welcomed the announcement that the European Parliament transport committee would push to make a second piece of free hand luggage a legal right for flights across Europe. Until now, we have depended on the goodwill of airlines to carry on board anything more than a pathetically small personal items bag. But despite the committee's best intentions, MEPs have undermined the outcome before even starting the confrontation with the Council of the EU, where governments want to restrict, rather than increase, air passenger rights. Rather than setting their sights on securing a meaningful luggage allowance, MEPs have instead proposed a risible minimum allowance – one that, if enforced by airlines, would permit only the smallest of bags. According to their motion, the minimum sum of length, width, and height would be capped at 100cm – barely more than two shoe boxes. It's small to the point of being impractical, and would do little to alleviate the frustration of passengers. Some might argue it's an improvement on the existing situation, but the reality is that airlines would likely be even more stringent in checking the size of hand luggage – and hammering passengers who exceed the limit. At the same time, airlines are already playing the victim and have framed the right to a second free luggage item as unfair for those who want to fly 'light' (with just a small backpack) without paying extra. The truth is that allowances have been reduced year after year, forcing passengers to pay extra. And whilst there is a chance that airlines would try to recoup lost revenue – for instance, by inflating ticket prices – doing so risks losing passengers. Given that the limit would be applied across the board, it would more likely just be something airlines would have to swallow. Which of course explains their loud protest. Consumers shouldn't hold their breath for a substantial improvement to baggage allowances. The parliament's lead negotiator on the file, the Italian democrat Matteo Ricci, has bigger things on his mind. Namely, the chance of being elected as governor of la Marche region at the end of September; and defending himself in a corruption investigation over funds he awarded as mayor of Pesaro city. He's hardly the hand luggage hero EU travellers long for. And though a second item of hand luggage might technically be a win for consumer rights, the gain could have been much greater if EU lawmakers had the courage to really challenge private airlines' interests. Roundup Life after plastic – Plastic pollution is highly detrimental to human and animal health, and is expected to triple by 2060 if no action is taken to reverse the trend. But a global treaty to limit pollution is facing pushback from petrostates. Age checks in the virtual world – European countries are tightening age verification rules to protect children online, especially in the realm of porn platforms. But building a robust system is complicated by the fast-evolving online space, and age checks raise their own privacy concerns. How bad was the deal? – The EU-US tariff deal has come under intense scrutiny, with many concluding that the EU has completely caved to Trump's bullying. But is all lost? Maybe not, Nicolai von Ondarza argues. And the Commission is also clinging to the line that the deal "could ensure stability and protect our shared interests." Across Europe Döner dispute – Germany's appetite for döner kebabs stems from the influx of Turkish Gastarbeiter (guest workers) who arrived between the 1950s and 1970s to help rebuild post-war Germany. But a strike at one of the country's largest skewer suppliers has pushed up prices of the cheap eat. What happened to proper paella? – Non-Spanish rice is increasingly being marketed as paella rice, much to the frustration of chefs who have noted that their time-tested recipes don't taste so good. 'When you cook it, you realise: the cooking points are different.' More munitions to Ukraine – Sweden will send around €238 million worth of equipment to Ukraine, including Patriot missiles and anti-tank ammunition. The pledge is part of a broader €433 million package jointly coordinated with Denmark and Norway and is largely sourced from existing European stockpiles.
