Trump Announces Novartis Plans to Build 11 US Plants After Meeting CEO

• Trump claimed Novartis is building 11 U.S. plants due to his tariff policies, though the company's statement did not confirm this specific number
• Novartis previously announced a $23 billion investment plan last year to build and expand 10 U.S. facilities following threats of drug import tariffs
• The company confirmed recent groundbreakings in North Carolina and California, plus plans for a new radioligand therapy manufacturing site in Florida

Summary

President Donald Trump announced that Swiss pharmaceutical giant Novartis plans to build 11 manufacturing plants in the United States, citing his administration's tariff policies as the driving force. Trump made the announcement Thursday while speaking at a steel plant in Rome, Georgia, following a White House meeting with Novartis CEO Vas Narasimhan on Wednesday.

Key Details:

Novartis confirmed meetings with U.S. government officials and discussed recent facility developments, including groundbreakings in North Carolina and California, plus expansion plans for a radioligand therapy manufacturing site in Florida. However, the company's statement did not confirm the specific number of 11 facilities mentioned by Trump.

Financial Context:

In 2024, Novartis previously announced plans to invest $23 billion to build and expand 10 U.S. facilities, a decision made after the Trump administration threatened to impose import duties on drugs.

Market Implications:

The announcement underscores the impact of Trump's protectionist trade policies on pharmaceutical manufacturing decisions. Major drugmakers are responding to tariff threats by increasing domestic production capacity, potentially reshoring operations from overseas. This represents significant capital investment in U.S. manufacturing infrastructure and could affect pharmaceutical supply chains globally.

The discrepancy between Trump's claim of 11 plants and Novartis's previous announcement of 10 facilities, combined with the company's cautious statement avoiding a specific number, suggests ongoing negotiations or evolving expansion plans. The radioligand therapy manufacturing expansion indicates Novartis's strategic focus on advanced cancer treatment technologies.