British pharmaceutical group GSK plans to invest $30 billion in the United States over the next five years, it announced Wednesday as President Donald Trump began a UK state visit.
The investments will bolster GSK鈥檚 research and development as well as production capacities in the US, the company said, as drugmakers faced pressure from Trump to invest more in the world鈥檚 biggest economy.
Trump unleashed a barrage of tariffs after his re-election last year, to force a range of industries to increase domestic production as he accused them of contributing to an 鈥榰nfair鈥� US trade deficit.
While the pharma industry has so far been spared swingeing tariffs, GSK and some of its rivals have personally been identified by Trump as needing to invest more in the US.
鈥楾his week鈥檚 state visit brings together two countries that have led the world in science and healthcare innovation,鈥� GSK chief Emma Walmsley said in a statement Wednesday.
Its US committment includes a $1.2-billion plan to build a biologics factory in Pennsylvania for developing respiratory and cancer treatments, and artificial intelligence development at its five US manufacturing sites.
GSK said it already has around 15,000 employees in the United States, and its investments would create 鈥榟undreds of highly skilled jobs鈥�.
Its announcement is the first during Trump鈥檚 visit to reveal planned investment in the US.
American technology giants on Tuesday revealed plans for multi-billion-dollar investments into Britain鈥檚 AI sector.
Microsoft led the way, saying it would pump $30 billion into the UK over four years, while Google said it planned investment of nearly $7 billion over the next two years.
It comes as GSK rivals pulled the plug in the past week on major pharmaceutical projects planned for the UK.
US group Merck dropped plans to build a $1.4-billion research centre in Britain, blaming the country鈥檚 鈥榣ack of investment鈥� in the sector and 鈥榰ndervaluation of innovative medicines and vaccines by successive UK governments鈥�.
British pharmaceutical group AstraZeneca has meanwhile paused expansion of its research site in university city Cambridge.
In July, however, AstraZeneca said it would invest $50 billion in the US by 2030.
鈥楪SK will be hoping that in following AstraZeneca... they will help to avoid any sector-specific tariffs that might otherwise be coming their way,鈥� noted Steve Clayton, head of equity funds at Hargreaves Lansdown.
