Novartis to invest $23 billion following Trump's announcement that he will impose tariffs on pharmaceuticals

Days after President Donald Trump stated that he will impose "significant" tariffs on pharmaceuticals, Swiss company Novartis announced a $23 billion investment in the United States.

The drugmaker reported that its investment, to be made over the next five years, will be earmarked for various projects, including building new plants in the United States and job creation.

"We are announcing a planned $23 billion investment over 5 years in US-based infrastructure, ensuring all key Novartis medicines for US patients will be made in the United States," Novartis said in a communication.

"This commitment enables Novartis to expand on its current manufacturing, research and technology presence across the country with 10 facilities, including 7 brand new facilities, creating nearly 1,000 new jobs at Novartis and approximately 4,000 additional US jobs," it added.

Among the various projects announced, Novartis will install a $1.1 billion biomedical research and development center in San Diego, California, and two radioligand therapy (RLT) manufacturing complexes in Florida and Texas, in addition to renovating three similar facilities in Indiana, New Jersey and California.

Vas Narasimhan, Novartis CEO, said these investments "will enable us to fully bring our supply chain and key technology platforms into the US," with the goal of growing in the country.

On Wednesday, Trump said pharmaceutical imports would be subject to "significant" tariffs very soon, as part of his plan to restore the country's manufacturing.

"We're going to announce a major tariff on pharmaceuticals very soon. And once we do that, they're going to come running back to our country because we are the big market. The advantage we have over everybody else is that we are the big market. So we're going to announce very soon a major tariff on pharmaceuticals," the president said during a dinner of the Republican Congressional Central Committee.