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Swiss drugmaker Novartis announced plans to invest $23 billion in the United States over the next five years, responding to growing political pressure and potential import tariffs threatened by former President Donald Trump.

The move includes building six new manufacturing plants and expanding four existing ones, with the goal of strengthening its US footprint and increasing local production.

According to Reuters, the pharmaceutical giant revealed that the buildout will also feature a new research and development hub in San Diego, California.

While the exact locations for all six manufacturing sites have not yet been finalized, two are expected to be constructed in Florida and Texas.

This large-scale investment is projected to create over 4,000 jobs. Novartis said 1,000 of those positions will be full-time roles for engineers and scientists, while the remaining jobs will include construction and support staff.

The announcement follows President Trump's recent statement at a Republican fundraising event, where he warned of a "major" upcoming tariff on pharmaceutical imports.

"We're going to tariff our pharmaceuticals," he said, arguing that such a move would bring drug production back to the US in large numbers.

Novartis to Shift Drug Production to US Amid Global Strategy Shift

Novartis CEO Vas Narasimhan acknowledged the tariffs as a concern but emphasized that they weren't the main reason behind the company's expansion. "We believe we can manage the tariffs—though of course they will be very painful," he said in an interview.

Narasimhan noted that the company's broader goal is to manufacture the drugs it sells in America within the country, rather than relying on overseas production, Investopedia said.

This plan aligns with Novartis's ongoing "US-first" strategy. The company has said it hopes to become one of the top five pharmaceutical players in the American market, the largest healthcare market globally.

Novartis already produces key medications like Entresto for heart failure and Kisqali for breast cancer in 33 sites around the world.

The firm joins other major drugmakers shifting focus to US manufacturing. Eli Lilly recently announced a $27 billion investment to expand its American facilities, while Johnson & Johnson pledged to increase its US investments to $55 billion.

Industry leaders note that building pharmaceutical plants in the U.S. is both time-consuming and costly.

According to PhRMA, the process can take five to ten years and cost up to $2 billion, due to strict regulatory guidelines.