Merck opens manufacturing facility in North Carolina amid Trump’s tariff threats

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(Reuters) -Merck said on Tuesday it has opened a $1-billion facility at its North Carolina site, the latest drugmaker to boost its U.S. manufacturing amid President Donald Trump’s tariff threats.

Trump has been piling pressure on drugmakers since taking office to move medicine production to the U.S., and has threatened to impose 25% tariff on pharmaceutical imports.

In February, Trump met with the CEOs of major drugmakers to discuss industry concerns such as tariffs on drug imports.

Eli Lilly has since announced plans to invest at least $27 billion to build four new manufacturing plants in the U.S.

Pfizer has also said it might move overseas manufacturing to its existing plants in the U.S.

Merck expects to invest $8 billion in the U.S. by 2028. It has already spent more than $12 billion since 2018 to expand domestic manufacturing, research and development capabilities, and create new jobs in the U.S.

The company’s manufacturing footprint is slightly heavier outside of the U.S., Chief Financial Officer Caroline Litchfield said in a conference earlier this month.

“As we all try to understand what tariffs may come, our company is focused on the investments that we’re making in this country to support our pipeline,” Litchfield said.

Merck has facilities in countries such as Ireland and Singapore, according to the company’s website.

Other sectors with large production facilities outside the U.S. have also implemented counter measures such as potential price hikes, changes in sourcing locations and new domestic plants to brace for potential tariffs.

(Reporting by Sriparna Roy in Bengaluru; Editing by Shinjini Ganguli)