Trump's Trade Policy Boosted by Global Pharmaceutical Companies' $350 Billion Investment. Hankyoreh Graphic

Global pharmaceutical companies are rushing to announce investment plans in the United States. 

The Wall Street Journal (WSJ) reported on the 17th (local time) that "Amid President Trump's threat of tariffs on imported drugs, global pharmaceutical companies' commitments to invest in domestic manufacturing and research and development (R&D) in the U.S. add up to over $350 billion by 2030." This is seen not just as a bargaining chip but as a movement that could shake the industry's structure itself.

The specific plans of each company are concrete. According to Reuters, Britain's GSK will invest $30 billion in U.S. R&D and supply chain infrastructure over the next five years and build a new $1.2 billion plant in Pennsylvania. U.S. Eli Lilly will invest a total of $27 billion, including a new $5 billion plant in Richmond, Virginia. 

In addition, Switzerland's Roche and the British multinational AstraZeneca (AZ) have successively announced expansions of local production and research infrastructure. The Guardian reported in July that AstraZeneca would invest $50 billion in the United States by 2030.

The backdrop to these large-scale investments is President Trump's strong rhetoric. 

He has left open the possibility of "up to 250% tariffs" on imported drugs, and The Guardian also reported that he warned of a "200% tariff threat," stating that "drugs manufactured overseas can no longer come in cheaply." The WSJ analyzed that the tariff pressure is not simply a cost issue but is "combined with a political message of boosting domestic employment and manufacturing."

The problem is that this trend will have a significant impact on the Korean pharmaceutical industry as well. 

While Korea has secured a certain level of competitiveness in generics and biosimilars, its limited domestic market has led it to grow with a structure dependent on global exports from the outset. Products like Celltrion's Remsima, Herzuma, and Truxima, and Samsung Bioepis' Enbrel and Humira biosimilars, derive most of their revenue from overseas sales. 

In fact, Celltrion currently earns 98.8% of its revenue from overseas, and Samsung Biologics also records over 91% of its revenue from abroad. In particular, Samsung Biologics' U.S. sales proportion has surged from an annual level of 25.8% to 43% in the most recent quarter.

Therefore, if the U.S. enforces local production or raises tariff barriers, Korea's export structure, which relies on price competitiveness, could be fundamentally shaken. 

The fact that Celltrion is considering establishing a production base in the U.S. and Samsung Biologics is exploring the possibility of a joint venture is in the same context. It is being perceived not as a simple choice but as a "survival strategy to enter the U.S. market."

Experts are also voicing concerns. Ha Joon-kyung, a professor at Hanyang University, pointed out, "President Trump's tariff policy is closer to boosting U.S. manufacturing than a bargaining chip." He added, "If tariffs lead to upward pressure on exchange rates, the burden of U.S. investment for Korean companies will increase." He also emphasized that "the essence of the trade war is competition for technological hegemony" and that Korea must "hasten strategies to strengthen its core industrial competitiveness and diversify its exports."

Ultimately, the investment commitments from global pharmaceutical companies show that the Trump administration's trade policy is leading to actual industrial restructuring beyond mere political slogans. The Korean pharmaceutical industry is also not immune to this massive trend. 

In particular, the question of how long the export structure centered on biosimilars can be maintained, and the painful question of how to cope with the dual pressures of strengthening supply chains centered in the U.S. and competing for technological hegemony, are being raised.

#TrumpTradePolicy #GlobalPharmaceuticalCompanies #350BillionInvestment #WSJ #Reuters #Guardian #Biosimilars #Celltrion #SamsungBiologics #KoreanPharmaceuticals