Foreign companies eye US expansion to lessen fallout from tariffs

Multiple non-U.S. companies, spanning sectors from pharmaceuticals and automotive to industrial gases and technology, are significantly expanding or relocating production to the United States. This strategic shift, driven by efforts to mitigate the impact of President Trump's tariffs on imported goods, involves billions in new investments and facility expansions from firms such as AstraZeneca, Honda, Hyundai, Novartis, Roche, Sanofi, Stellantis, and TSMC, signaling a substantial localization of global supply chains within the U.S. market.

Analysis

Oct 6 (Reuters) - Some non-U.S. companies have said they are looking at expanding their presence or setting up shop in the United States to mitigate the impact of President Donald Trump's tariffs on imported goods. Below are some of the plans flagged by those companies. Jumpstart your morning with the latest legal news delivered straight to your inbox from The Daily Docket newsletter. Sign up here. AIR LIQUIDE (AIRP.PA) The French industrial gases company flagged an up to $200 million investment in Louisiana in June and a more than $50 million investment in the U.S. semiconductor industry in July. Advertisement · Scroll to continue ASTRAZENECA (AZN.L) The drugmaker plans to spend $50 billion to fund a new plant in Virginia and expansion in Maryland, Massachusetts, California, Indiana and Texas, it said on July 21. HONDA (7267.T) The Japanese carmaker plans to move some car production from Mexico and Canada into the U.S., aiming to make 90% of cars sold in the country locally, the Nikkei reported in April. HYUNDAI MOTOR (005380.KS) The South Korean automaker plans to further localize production in the U.S. and make hybrid vehicles at its new factory in Georgia, it said in January. INVENTEC (2356.TW) The Taiwanese company, which makes AI servers that use Nvidia (NVDA.O) chips, has agreed to invest up to $85 million to build manufacturing facilities in Texas, it said in April. Advertisement · Scroll to continue LAVAZZA The Italian coffee maker will press ahead with its U.S. expansion, it said in April. Lavazza, which produces locally around half of what it sells in the U.S., plans to increase this output to 100%. NISSAN MOTOR (7201.T) The Japanese automaker weighs moving production of its Sentra automobile from Mexico to the U.S., Automotive News reported on May 14. The Nikkei relayed in April that Nissan was also considering shifting some domestic production of U.S.-bound vehicles there. NOVARTIS (NOVN.S) The Swiss drugmaker plans to spend $23 billion to build and expand 10 facilities in the U.S., it said in April. ROCHE (ROG.S) The Swiss pharmaceutical giant will invest $50 billion in the U.S. over the next five years, it said in April. On May 12, it announced an additional $550 million investment to expand its Indianapolis diagnostics manufacturing hub. ROLLS-ROYCE (RR.L) The London-listed power and propulsion developer plans a $75 million investment to increase U.S. manufacturing capabilities in South Carolina, it said in July. SAMSUNG ELECTRONICS (005930.KS) The tech giant is considering moving manufacturing of dryers from Mexico to its plant in South Carolina, Korea Economic Daily reported in January. SANOFI (SASY.PA) The French drugmaker plans to invest at least $20 billion in the U.S. through 2030 to boost manufacturing and research, it said in May. STELLANTIS (STLAM.MI) The automaker behind brands such as Chrysler, Jeep and Peugeot plans to invest about $10 billion in the United States, Bloomberg News reported on October 4, citing people familiar with the situation. TSMC (2330.TW) The Taiwanese chipmaker is expanding investment in the U.S., planning to build five chip facilities there in coming years, its CEO said in March. VOLKSWAGEN Volkswagen's Audi brand will expand production in North America with a focus on its most important cars for the U.S. market and will make a decision on where to base itself this year, Audi CEO said in February. VW CFO said in January it planned to produce more in the U.S. Compiled by Tomasz Kanik and Vera Dvorakova in Gdansk; Editing by Milla Nissi-Prussak Our Standards: The Thomson Reuters Trust Principles. A broad-based strategic pivot towards onshoring manufacturing into the United States is underway among major non-U.S. corporations, driven explicitly by a desire to mitigate the impact of U.S. tariffs. This trend involves substantial capital commitments across key sectors, indicating a significant de-risking of global supply chains. The pharmaceutical industry is leading this charge with staggering investment plans, including $50 billion each from AstraZeneca and Roche, $23 billion from Novartis, and at least $20 billion from Sanofi. The automotive sector is following suit, with Honda aiming to produce 90% of its U.S.-sold cars locally, and Stellantis reportedly planning a $10 billion investment. In the technology space, chipmaker TSMC is planning five new U.S. facilities, and AI server manufacturer Inventec is investing up to $85 million in Texas. These moves represent a systemic response to trade policy, signaling a long-term strategy to secure access to the U.S. market and reduce vulnerability to geopolitical friction, which carries a strongly positive sentiment for the fundamental outlook of the involved companies.

Key Decisions for Investors

• Consider the multi-billion dollar U.S. investments by companies like AstraZeneca (AZN), TSMC (TSM), and Novartis (NVS) as a significant de-risking of their business models, potentially justifying a more favorable long-term valuation due to reduced exposure to trade policy volatility.
• Investors should analyze the competitive positioning of automakers such as Honda (HMC) and Stellantis (STLA) against peers, as their aggressive localization of production may create a durable advantage in cost structure and supply chain reliability within the North American market.
• The massive capital inflows into U.S. manufacturing, particularly in high-value sectors like semiconductors and pharmaceuticals, signal an opportunity to assess domestic suppliers and industrial real estate assets that stand to benefit from the build-out of this new infrastructure.
• Given the neutral sentiment for Nvidia (NVDA) despite its mention, investors should recognize that the direct beneficiaries of this trend are the companies making capital expenditures (e.g., Inventec, TSMC), not necessarily their existing component suppliers who may see sourcing location shift without a net change in volume.