Overview

• Johnson & Johnson projects $400 million in tariff-related expenses for 2025, driven primarily by U.S.-China trade tensions and tariffs on materials like aluminum and steel.
• The estimate excludes potential costs from pharmaceutical tariffs currently under investigation by the Trump administration, which could further strain the industry.
• CEO Joaquin Duato argues that tax policy, not tariffs, is the most effective tool for boosting domestic manufacturing capacity in the U.S.
• The company’s $55 billion investment plan aims to localize production of advanced medicines in the U.S. over the next four years, despite escalating trade-related costs.
• Experts warn that additional pharmaceutical tariffs could disproportionately affect generic drug manufacturers, potentially leading to supply chain disruptions and shortages.