GlaxoSmithKline to Invest $300 Billion in US Amid Trump Tariff Threats

GlaxoSmithKline, a British pharmaceutical giant, announced on Wednesday that it plans to invest 300 billion dollars in the United States over the next five years. This investment will be directed towards research and development, as well as the construction of supply chain infrastructure. The announcement comes at a time when President Trump has threatened to impose import tariffs on the pharmaceutical industry to boost domestic manufacturing.

The investment includes 12 billion dollars for the construction of a new factory in Upper Merion, Pennsylvania. This facility will be used to produce new medications for respiratory diseases and cancer, with construction expected to begin in 2026. In addition to infrastructure development, the company will also invest in artificial intelligence and advanced digital technologies to enhance production capabilities at its five existing manufacturing sites in the country. This investment will also strengthen the production of drug ingredients, improve equipment and assembly processes for auto-injectors, and support research and development activities, including the number of trials, trial locations, and the number of participants in clinical trials.

The pharmaceutical giant stated that its new facilities will "seamlessly integrate research and development between the U.S. and the U.K., thereby enhancing the leadership position of both countries in the field of life sciences."

This latest move makes GlaxoSmithKline the latest pharmaceutical company to expand its business operations in the United States. This is primarily due to a threat made by President Trump in July, when he warned of imposing tariffs of up to 200% on imported drugs, giving pharmaceutical companies "about one to one and a half years to adjust." Previously, the industry had not been involved in trade disputes, but since President Trump took office, the U.S. government has repeatedly pressured the industry to promote domestic manufacturing.

GlaxoSmithKline's announcement of its investment in the U.S. coincides with President Trump's second state visit to the U.K. (September 16-17). The U.S. Secretary of Commerce praised the investment plan, stating, "This landmark investment will create tens of thousands of American jobs and ensure that key drugs and technologies are developed and produced in the United States."

However, GlaxoSmithKline's statement did not specify whether the 300 billion dollars includes funds that had already been allocated to its U.S. operations. According to industry insiders, some companies that announced large-scale investments in the U.S. during Trump's presidency had projects or production sites that were already in the planning stages, with the goal of achieving a larger promotional figure.

GlaxoSmithKline stated that over the past year, the company has invested approximately 20 billion dollars in U.S. manufacturing. These investments will create hundreds of technical jobs, add some construction jobs, and further expand its existing workforce of approximately 15,000 employees in the United States.