AstraZeneca Shifts Production to US amid Tariff Concerns

Tuesday 29 April 2025 - 17:09

By: Zahouani Ilham

AstraZeneca Shifts Production to US amid Tariff Concerns

AstraZeneca is relocating part of its manufacturing operations to the United States in response to the potential imposition of tariffs on pharmaceutical imports. Chief Executive Pascal Soriot reaffirmed the company’s strong commitment to expanding in the U.S., noting a 30% increase in first-quarter profits, which reached $2.92 billion.

Earlier in April, the U.S. government signaled it may target the pharmaceutical sector with new tariffs. Until now, this industry had largely been spared from the broader import levies introduced under former President Trump, which affected steel, aluminum, and automobiles. Trump also launched a "national security" investigation into drug imports, raising further concerns for European-based production.

While AstraZeneca could be affected by these potential tariffs, Soriot emphasized that the risk is limited due to the company’s ongoing transition of manufacturing operations from Europe to the U.S. “We are in the process of shifting the manufacturing of those products to the US,” he explained during an earnings call.

The U.S. is a vital market for the pharmaceutical industry. AstraZeneca has already committed to investing $3.5 billion in the country by the end of 2026, with the goal of making the U.S. account for half of its global revenue by 2030. Several other pharmaceutical firms are following suit, increasing their American investments in anticipation of trade policy shifts.

On Tuesday, AstraZeneca reaffirmed its financial targets, maintaining its ambition to reach $80 billion in annual revenue by the decade's end. The company’s strong performance in cancer therapies and biopharmaceuticals helped drive its gains in the first quarter of 2025, with 42% of its revenue coming from the U.S. market, and 20% from Europe.