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French pharmaceutical giant Sanofi announced plans to pour at least $20 billion into its U.S. operations through 2030, stepping up its research and manufacturing activities as global drugmakers respond to rising pressure from the Trump administration’s trade policies.
In a statement released Wednesday, Sanofi said the investment will ramp up spending on research and development (R&D) and significantly expand its production footprint in the United States—both by directly upgrading its facilities and by teaming up with domestic manufacturers.
Multinational pharmaceutical companies are stepping in with hefty investments in the U.S. to fend off potential tariffs and navigate President Donald Trump’s push to bring overseas production back onshore. Trump has spared prescription drugs in his recent tariff wave but warned of steep measures ahead, arguing that pushing companies to shift their operations to the U.S. will reduce the country’s trade deficit and boost domestic job creation.
Sanofi’s planned expansion is expected to create thousands of high-paying jobs across several states. The company said the investment will also help secure local production of essential medicines, reducing reliance on foreign supply chains.
While Sanofi indicated that its plans may evolve depending on external conditions, CEO Paul Hudson stressed that its 13,000 U.S.-based employees are already driving innovation in several therapeutic fields. Therapeutic fields refer to areas of medical treatment and drug development, such as oncology or immunology.
Meanwhile, Swiss competitor Roche, which announced in April a $50 billion investment in the U.S. over the next five years, warned that Trump’s new executive order—mandating that drug prices in the U.S. match the lowest rates offered abroad—could force firms to scale back their American investments. The executive order, signed earlier this week, targets high drug prices and could disrupt the pharmaceutical business model, which relies heavily on U.S. revenues to fund innovation.
Last month, Swiss drug maker Novartis also rolled out a five-year, $23 billion investment plan to bolster its U.S.-based production and R&D operations.
As Trump continues to roll out sector-specific tariffs—from aluminum to automobiles—the pharmaceutical industry is bracing for similar treatment. The president has claimed that once companies hear about the tariffs, they’ll “leave China” and other countries, because they “have to sell in the U.S., where most of their products are sold.”
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