Latest news with #USNationalEconomicCouncil
The Star
7 days ago
- Business
- The Star
AstraZeneca vows to spend US$50bil on US manufacturing boost
LONDON: AstraZeneca Plc plans to invest US$50bil in the United States before 2030, becoming the latest European pharma company to ratchet up spending in the country ahead of potential tariffs on imported medicines. The investment will go towards manufacturing as well as research and development, Astra said in a statement. It includes US$4bil for a new facility in Virginia that will make drugs for chronic diseases, Kevin Hassett, director of the US National Economic Council, said on Monday at an event in Washington. 'With the completion of this investment, substantially all of AstraZeneca's pharmaceuticals sold in the United States will be produced in the United States,' he said. Astra will also manufacture its experimental weight-loss pill at the facility in Virginia, following an earlier pledge from rival Eli Lilly & Co, which is also planning to make its obesity pill in the United States. The announcement comes as European drug companies rush to highlight their US investments with the aim of mitigating the impact of tariffs from President Donald Trump. Astra already announced plans in November, a week after Trump's election, to invest US$3.5bil in the United States by the end of 2026, noting at the time that it employs nearly 18,000 people in the country. The company said the latest investment announcement is in addition to that earlier amount. Since Trump's election, European competitors have touted ever-larger spending plans. Switzerland's Novartis AG in April announced plans for US$23bil in US-based infrastructure spending, while cross-town rival Roche Holding AG said it would invest US$50bil. In May, French drugmaker Sanofi announced intent to invest at least US$20bil in the United States by 2030. Pascal Soriot, who's been chief executive officer of Astra since 2012, had urged tariff restraint from US policymakers. This spring, he recommended that US officials exempt medicines from tariffs, arguing that tax incentives are a better way to attract investment in drug development and manufacturing. On Monday, Soriot said he understands the need for countries to have medicines manufactured domestically. 'It's a question of national security,' he said. 'This is a vision that the president and his administration have put out there, and a vision that we totally understand, totally support, and the tariffs are accelerating a movement that we would have made in any case.' Trump has proposed various timelines for tariffs on pharmaceuticals, most recently floating duties that would start as soon as Aug 1. The president said he expects to give companies a year to bring manufacturing to the United States before imposing tariffs as high as 200%. Meanwhile, Soriot has raised concerns in the United Kingdom about his company's commitment to its home country. He has long complained about the United Kingdom's regulatory environment, which he says is a threat to hold the nation back from staying competitive with the United States and China. In January, Astra abandoned plans for a £450mil vaccine manufacturing plant in Liverpool. The company operates 17 manufacturing sites in 12 US states. Earlier this month, British paper The Times reported that Soriot is considering moving the company's stock listing to the United States. — Bloomberg
Business Times
21-07-2025
- Business
- Business Times
AstraZeneca vows to spend US$50 billion on US manufacturing, development
[MUNICH/WASHINGTON] AstraZeneca plans to invest US$50 billion in the US before 2030, becoming the latest European pharma company to ratchet up spending in the country ahead of potential tariffs on imported medicines. The investment will go towards manufacturing as well as research and development, Astra said in a statement. It includes US$4 billion for a new facility in Virginia that will make drugs for chronic diseases, Kevin Hassett, director of the US National Economic Council, said on Monday (Jul 21) at an event in Washington, DC. 'With the completion of this investment, substantially all of AstraZeneca's pharmaceuticals sold at the United States will be produced in the United States,' Hassett said. Astra's announcement comes as European drug companies rush to highlight their significant footprints in the US in hopes of mitigating the impact of any potential tariffs from US President Donald Trump. Astra already announced plans in November, a week after Trump's election, to invest US$3.5 billion in the US by the end of 2026, noting at the time that it employs nearly 18,000 people in the country. Since then, European competitors have touted even larger spending plans. Switzerland's Novartis in April announced plans for US$23 billion in US-based infrastructure spending, while cross-town rival Roche Holding said it would invest US$50 billion. In May, French drugmaker Sanofi announced intent to invest at least US$20 billion in the US by 2030. Pascal Soriot, who's been chief executive officer of Astra since 2012, has also urged tariff restraint. This spring, he recommended that US officials exempt medicines from tariffs, arguing that tax incentives are a better way to attract investment in drug development and manufacturing. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Trump has proposed various timelines for tariffs on pharmaceuticals, most recently floating duties that would be imposed as soon as Aug 1. The president said that he expects to give companies a year to bring manufacturing to the US before imposing tariffs as high as 200 per cent. Meanwhile, Soriot has raised concerns in the UK about his commitment to the home country. He has long complained about the UK's regulatory environment, which he says is a threat to hold back the UK from staying competitive with the US and China. In January, Astra abandoned plans for a £450 million (S$777 million) vaccine manufacturing plant in Liverpool. The company operates 17 manufacturing sites in 12 US states. Earlier this month, British paper The Times reported that Soriot is considering moving the company's stock listing to the US. That would be a major blow to the UK's equity markets, which have endured similar defections from other companies in recent years. Under Soriot's leadership, Astra's market value has more than tripled as the company has become a global powerhouse in cancer medicines. It's also built up a significant drug pipeline for other areas including cardiovascular, renal and metabolic diseases. BLOOMBERG
Perth Now
20-06-2025
- Politics
- Perth Now
Trump meeting on backburner with PM to skip summit
The prime minister will wait a little longer for a second-chance meeting with Donald Trump as the president pushes out his timeline to act on the situation in the Middle East. Anthony Albanese will not go to The Hague for next week's NATO summit, with his deputy Richard Marles to represent Australia at the event as originally planned. Mr Albanese was considering making a last-minute dash to the talks, which could have provided an opportunity to meet in person with the US president. The pair had been scheduled to hold their first face-to-face meeting on the sidelines of the G7 summit in Canada earlier this week. But 24 hours before they were due to meet, Mr Trump revealed he would leave the event early to deal with escalating tensions between Israel and Iran. The prime minister is keen to meet with Mr Trump to try to negotiate an exemption from US tariffs, advocate for the nation's nuclear submarine deal with the US and UK and discuss defence spending. Mr Trump is expected to attend the NATO summit, but there is no guarantee he will not pull out at the last second amid volatility in the Middle East. The US president on Friday said he would decide whether to get involved in the Israel-Iran conflict "within the next two weeks". Liberal senator James Paterson earlier said the prime minister should attend NATO regardless of whether he meets with Mr Trump. He believes it would allow Mr Albanese to co-ordinate with allies and help support Ukraine in its war against Russia. It would also present an opportunity to discuss the situation in Iran with European partners, and discuss defence spending. "If he meets with President Trump on the sidelines, that would be a bonus," Senator Paterson said. "But frankly, I think his approach of now waiting seven months to go and see the president and not going to see him in Washington DC, relying on a chance meeting on the sidelines of an international forum, is a very risky strategy." The prime minister wasn't the only world leader left hanging at the G7. Mexican President Claudia Sheinbaum, Indian Prime Minister Narendra Modi and Ukrainian Volodymyr Zelenskiy also had talks scheduled with Mr Trump the day after he left. Mr Albanese met with senior members of the president's economic team including US Treasury Secretary Scott Bessent, US National Economic Council director Kevin Hassett and US Trade Representative Jamieson Greer. The talks involved trade, tariffs and critical minerals - which Australia has considered using as a bargaining chip in US tariff negotiations.
Perth Now
18-06-2025
- Business
- Perth Now
PM may play NATO trump card to score US president talks
Australia's chances of tariff exemptions remain uncertain as the prime minister returns from an overseas trip without having spoken to Donald Trump. Prime Minister Anthony Albanese's much-anticipated plans to hold his first in-person meeting the US president were thrown into chaos because of escalating tensions in the Middle East. The two were expected to speak on the sidelines of the G7 in Canada during the summit's final day to discuss trade, tariffs and defence. But less than 24 hours before their meeting, Mr Trump revealed he had to leave early to deal with the situation between Iran and Israel. The prime minister will fly into Sydney on Thursday without clear progress towards a trade resolution. But Mr Albanese could get a second chance at Mr Trump within days. The prime minister is considering going to The Hague at the end of June to attend a summit of the North Atlantic Treaty Organisation, where the US president is expected to appear. "We'll meet soon and I'm sure that will occur," Mr Albanese told reporters in Calgary on Tuesday local time (Wednesday AEST). "From time to time, meetings are rescheduled - that's what happens." The prime minister is also expected to advocate for Australia's nuclear submarine deal with the US and UK at his meeting with Mr Trump. Mr Albanese was not the only world leader lining up to speak with the leader of the free world at the G7. Ukrainian President Volodymyr Zelenskiy and Indian Prime Minister Narendra Modi had talks scheduled with Mr Trump the day after he left. Mexico President Claudia Sheinbaum was also set to meet Mr Trump face-to-face for the first time that day. Ms Sheinbaum received a call from the US president soon after news broke of his departure, but the prime minister has not received a direct call from Mr Trump. Instead, he met with the president's senior economic team on the day he was supposed to speak with Mr Trump. His discussions with US Treasury Secretary Scott Bessent, US National Economic Council director Kevin Hassett and US Trade Representative Jamieson Greer involved trade, tariffs and critical minerals - which Australia has considered using as a bargaining chip in US negotiations. The prime minister said Mr Trump's departure was "understandable" and insisted things were progressing. Australia's exports to the US continue to be hit with a baseline 10 per cent tariff and its steel and aluminium products incur a 50 per cent levy.
CNN
12-06-2025
- Business
- CNN
Nvidia will stop including China in its forecasts amid US chip export controls, CEO says
Chipmaker Nvidia will exclude the Chinese market from its revenue and profit forecasts following the imposition of tough US restrictions on chip sales to China, its CEO said Thursday. Asked whether the US will lift export controls after trade talks with China in London this week, Nvidia CEO Jensen Huang told CNN's Anna Stewart in Paris: 'I'm not counting on it but, if it happens, then it will be a great bonus. I've told all of our investors and shareholders that, going forward, our forecasts will not include the China market.' In recent years, Washington has stepped up efforts to restrict China's access to American chip-related technologies, aiming to prevent Beijing from using US innovations to bolster its military and artificial intelligence capabilities. Huang's comments underscore the impact of Washington's chip curbs on Nvidia, a company once best known for its video game graphics processors, that has profited tremendously from growing demand for AI chips and infrastructure. The company blew past Wall Street's revenue expectations in its first quarter of 2025, posting a 69% increase from the same period last year. But Nvidia missed out on an additional $2.5 billion in revenue because export restrictions prevented it from shipping its H20 AI chips to China. The company developed that chip specifically to accommodate US export controls but was told in April that it would need a special license to do so. Nvidia took a smaller hit than expected from the excess inventory, however: a $4.5 billion charge compared to the $5.5 billion it had expected. Kevin Hassett, director of the US National Economic Council, told CNBC Monday that the Trump administration might be open to loosening restrictions on exports of some microchips that China views as critical to its manufacturing sector. But the United States will maintain curbs on 'very, very high-end Nvidia' chips that are capable of powering AI systems, he added. On Thursday, Nvidia's Huang again criticized US chip export controls. 'The goals of the export controls are not being achieved,' he told CNN. 'Whatever those goals are that were being discussed initially, (they) are apparently not working. And so I think, with all export controls, the goals have to be well-articulated and tested over time.' Last month, Huang said at a news conference in Taiwan that the US curbs on chip exports were a 'failure' and warned that the restrictions were doing more damage to American business than to China. Nvidia's position as a critical supplier of AI chips has put it in the middle of the tech race between the US and China, which escalated earlier this year with the arrival of Chinese tech startup DeepSeek's supposedly cheap yet sophisticated AI model. The Trump administration has been eager to position the US as a leader in AI, with Vice President JD Vance saying that 'excessive regulation of the AI sector' could 'kill a transformative industry just as it's taking off' during remarks at the Artificial Intelligence Action Summit in Paris earlier this year. Dan Ives, global head of technology research at Wedbush Securities, said easing export controls could be necessary to prevent China from gaining an edge in AI. 'With the AI Revolution hitting its next gear of growth it is important for China tech players they get access to Nvidia chips with the current H20 ban essentially handing a good portion of Nvidia's business directly to Huawei on a silver platter,' he wrote in a June 11 industry note. In the meantime, Nvidia continues to expand – aiming to cement its place as a major AI player globally. Huang announced on Thursday that his company will build the world's first cloud computing platform for industrial artificial intelligence applications in Europe. It also said its Blackwell architecture will power new AI infrastructure projects in Europe. Olesya Dmitracova and Clare Duffy contributed to this article.
