Eli Lilly plans $27bn in new plants as Trump threatens pharma tariffs

As the drugmaker struggles with the threat of drug import duties from the Trump administration, Eli Lilly has stated that it will spend at least $ 27 billion to build four new manufacturing facilities in the US.

The company announced at a press conference in Washington on Wednesday that the new plants will be constructed over the next five years, and that they will create 10, 000 construction jobs as well as more than 3, 000 skilled workers like engineers and scientists.

Lilly&nbsp, said it will announce the locations of the sites later this year.

The announcement comes less than a week after US President Donald Trump&nbsp, met with&nbsp, chief executives from major drugmakers, including&nbsp, Lilly&nbsp, CEO David Ricks, to discuss industry concerns such as tariffs on drug imports.

At the news conference, US Commerce Secretary Howard Lutnick claimed that Lilly was actually doing “exactly what the president was hoping would happen.”

Ricks expressed his hope that the government would eliminate potential tariffs on medical products and continue to push for further tax reforms.

The drugmaker’s domestic manufacturing investments have been fueled by the tax-cutting legislation introduced in Trump’s first term, the CEO claimed in a statement released earlier on Wednesday.

Boost domestic manufacturing

Since taking office, Trump, who campaigned on a promise to boost domestic manufacturing, has been putting pressure on US companies. He suggested a 25% duty on pharmaceuticals and other imports last week.

Other sectors are also making manufacturing announcements. Apple announced earlier this week that it would spend $500 billion on US projects over the next four years, but analysts said some of that would be commitments from the past.

According to the US Trade Representative’s office, the US and its major trading partners have partnered to eliminate the tariffs on pharmaceutical goods and chemicals used in drug production for the past 30 years.

Trump has not yet ruled them out despite stating to Republicans that he was considering such an exemption at a White House meeting earlier this month.

The CEO responded to a question about federal employees leaving the US Food and Drug Administration by saying Lilly’s fees go toward paying the agency’s staff, and the company would be concerned if those funds “were directed toward something else.”

Lilly, which has become the world’s most valuable healthcare company, worth more than $855bn, said it has already committed $23bn to boost its US manufacturing footprint since 2020. That total now exceeds $50 billion thanks to its announcement on Wednesday.