Johnson & Johnson to invest $2B in North Carolina plant

Johnson & Johnson announced a massive $2 billion investment to build a factory in North Carolina on Thursday — a move to boost its domestic production as President Donald Trump threatens to slap devastating tariffs on pharmaceutical imports.

The healthcare giant joins Eli Lilly and AstraZeneca in committing billions to expand US manufacturing operations in response to Trump’s proposed import duties.

Earlier this month, Trump outlined plans for phased-in pharmaceutical tariffs that could start small and eventually reach 250%.

J&J struck a 10-year agreement with Tokyo-based contract drug developer Fujifilm Diosynth for its Holly Springs, NC, facility spanning more than 160,000 square feet.

The partnership will create approximately 120 new jobs as the company expands its domestic manufacturing presence.

Trump first floated pharmaceutical tariffs of 200% during a March meeting with Ireland’s leader, before escalating threats to 250% in an August television interview.

The president outlined a phased approach starting with small initial tariffs, then jumping to 150% within 18 months before reaching the 250% ceiling.

In April, the Trump administration launched a Section 232 national security investigation into pharmaceutical imports, the same legal authority previously used to impose tariffs on steel and aluminum.

The probe examines whether reliance on foreign drug manufacturing threatens American national security.

Trump’s tariff threats were significantly scaled back earlier this week when the US agreed to cap pharmaceutical tariffs on European Union imports at just 15%.

The deal, which takes effect Sept. 1, will impose near-zero tariffs on generic drugs from Europe while applying the 15% rate to branded pharmaceuticals.