Roche to Invest $50 Billion in U.S. Amid Trade Tensions

Swiss pharmaceutical giant Roche has announced a $50 billion investment in the United States over the next five years, aiming to create over 12,000 new jobs. This strategic move comes amid escalating trade tensions and potential tariffs on pharmaceutical imports under President Donald Trump's administration.

The investment plan includes expanding existing manufacturing and distribution centers in Kentucky, Indiana, New Jersey, and California. Additionally, Roche intends to establish new facilities: a gene therapy factory in Pennsylvania, a continuous glucose monitoring facility in Indiana, a weight loss drug manufacturing plant at an undisclosed location, and a cardiovascular, renal, and metabolism research center in Massachusetts. Roche CEO Thomas Schinecker emphasized that this investment reflects the company's commitment to innovation and growth in the U.S., where Roche currently employs 25,000 people across 24 sites.

This announcement follows similar investment plans by other pharmaceutical companies, including Novartis, Eli Lilly, and Johnson & Johnson, as the industry prepares for potential tariffs on Swiss pharmaceutical imports, which could face up to a 31% charge under the Trump administration’s ongoing trade probes.

President Donald Trump has been implementing tariff policies aimed at encouraging domestic manufacturing. In February 2025, he announced plans to impose tariffs of around 25% on auto imports, semiconductors, and pharmaceuticals, with the intention to increase these rates over time. The pharmaceutical industry, traditionally exempt from such tariffs under the World Trade Organization's 1994 agreement, now faces potential disruptions. Analysts warn that these tariffs could lead to increased drug prices and supply chain challenges.

Roche's investment is expected to generate over 12,000 new jobs, including nearly 6,500 construction jobs and 1,000 positions at new and expanded facilities. By expanding U.S.-based manufacturing, Roche aims to increase exports of medicines from the U.S., potentially reducing reliance on international supply chains. While the investment may bolster domestic production, there are concerns that tariffs could lead to higher drug prices for consumers. Richard Saynor, CEO of Sandoz Group AG, noted that tariffs would likely make drugs more expensive and limit access for patients.

Roche is a leading global pharmaceutical company headquartered in Basel, Switzerland. It specializes in oncology, immunology, infectious diseases, ophthalmology, and neuroscience. In 2024, Roche reported over $74 billion in global sales, with nearly $25 billion from its U.S. pharmaceutical division.

Roche's substantial investment plan includes expanding existing facilities and establishing new ones across several U.S. states. This strategic initiative not only underscores Roche's commitment to the U.S. market but also reflects a broader trend among pharmaceutical companies to bolster domestic manufacturing in response to evolving trade policies.