In anticipation of potential U.S. tariffs on pharmaceutical imports, British drugmaker AstraZeneca has begun relocating portions of its European manufacturing operations to the United States.
The move comes as President Donald Trump’s administration signals possible trade restrictions on the pharmaceutical sector, which has thus far been largely spared from broader tariffs.
Trump has already imposed tariffs on steel, aluminum, and automobiles, and has launched a national security review into imported pharmaceuticals, raising concerns across the industry.
To mitigate the risk of tariffs affecting its European-made products entering the U.S. market, AstraZeneca has proactively started shifting production. "We are in the process of transferring manufacturing of those products to the U.S.," said CEO Pascal Soriot during an earnings call. He noted that this shift would minimise the company's exposure to any future levies.
The U.S. is a crucial market for AstraZeneca, currently accounting for 42% of its revenue, with Europe contributing 20%. The company plans to invest $3.5 billion in its American operations by 2026, and Soriot has previously expressed hopes that the U.S. will generate around half of the company’s global revenue by 2030.
AstraZeneca reported a strong financial start to 2025, with first-quarter profits surging over 30% to $2.92 billion. This growth was largely driven by high demand for its cancer treatments and other biopharmaceutical products.
The company also reaffirmed its long-term target of reaching $80 billion in annual revenue by the end of the decade.