Eli Lilly announced that they will be investing $5 billion in one US state Trump tariff threats

Pharmaceutical company Eli Lilly announced that they will be investing $5 billion into domestic production.

The massive pledge will fund a manufacturing facility in Virginia, and comes amid threats from President Donald Trump to impose tariffs on pharmaceutical companies to encourage United States production. It is also an improvement from the original plan to invest in a $2.1 billion facility, which would have created 468 jobs, according to Fox Business.

The facility will be built in Goochland, Virginia and is expected to create as many as “650 high-wage jobs,” Fox reports. “The facility will produce active pharmaceutical ingredients for cancer, autoimmune and other advanced therapies.

“Our investment in Virginia underscores our commitment to U.S. innovation and manufacturing – creating high-quality jobs, strengthening communities, and advancing the health and well-being of Americans nationwide. By expanding our domestic capacity, we’re building a secure, resilient supply chain that delivers for patients today and supports the breakthrough medicines of tomorrow,” said David Ricks, Lilly CEO.

Governor Glenn Youngkin praised the company in a statement.

“Lilly is one of the world’s greatest innovators, and I want to thank them for this significant commitment to Virginia. By expanding manufacturing capacity here in the United States, we are strengthening our economy, securing America’s critical pharmaceutical supply chain, and positioning Virginia to lead in the industries that will drive innovation for generations to come,” he said.

Trump’s threats to impose up to 250% tariffs on pharmaceutical products have resulted in companies investing more money in the United States.

More from Reuters:

Several global drugmakers have pledged billions of dollars to scale up their U.S. manufacturing capacity as the industry braces for sector-specific tariffs.

Trump has said he would initially start small with pharma tariffs and eventually hike it up to 250% in an effort to boost domestic production.

The U.S. had also reached a bilateral trade deal with the European Union in July, which includes a 15% tariff on pharmaceuticals, except for some generic drugs.

Assuming an initial 15% U.S. tariff on pharmaceuticals, the brokerage estimates the impact to peak at about 4% of core profit on average, after mitigation efforts, for the companies analyzed.

X users weighed in:

The Trump Effect

— The Dark MAGA King (@realDavidGray77) September 16, 2025

They need to stop making these poisons and help people get better. Nutrition and exercise and taking the poisons out of processed food.

— Steviie #1776 (@Steviie70182326) September 16, 2025

Glad they’re investing in the US

— Mark G (@MarkG372837) September 17, 2025

They’ll bail if Left-O Spanberger wins.

— b1joe (@b1joe) September 17, 2025

That is great if they follow through. Some promise then renege on it. They like the PR at the announcement, but keep after them on their progress. Jobs for American citizens.

— Mary Dovie (@mjdovie) September 17, 2025

Writer/Columnist

Sierra Marlee is a millennial whose hunger for the truth in a world of fake news has led her to BizPac Review.

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