10H·

☝️Trump is not ruining the US economy

Johnson & Johnson (Pharmaceuticals) - $JNJ (-0,93 %) Invests over 55 billion US$ in the USA within four years to expand production and researchreuters.com. Four new plants are planned (the first in Wilson, North Carolina, has already been launched)reuters.com. This step was taken in March 2025, shortly after the Trump administration imposed a import tariff of 25 % on medicines on medicines and is intended to help produce more medicines domesticallyreuters.com
reuters.com. (Source: company statement/Reuters)

Roche (Pharmaceuticals) - $ROG (+1,96 %) The Swiss pharmaceutical company announced 50 billion US$ investments in the USA over the next five yearsfaz.net. This is Roche's response to President Trump's threat to impose tariffs of ~25 % on pharmaceutical importsto produce more important medicines in the USAfaz.net
faz.net. Plans include 1,000 new jobs in production and research (plus approx. 11,000 jobs with suppliers and construction) in the USAfaz.net. Announcement was made in April 2025 (Source: Company statement/F.A.Z.)

Eli Lilly (Pharma) - $LLY (+3,93 %) Announced in Feb. 2025, 27 billion US$ to invest in the construction of four new production facilities in the USAreuters.com. This is expected to more than double US production capacity and create over 3,000 new high-tech jobs (plus ~10,000 construction jobs)reuters.com. The background to this is the threat of a 25% tariff on drug imports, which is prompting Lilly to relocate production from Ireland & Co. to the USAfaz.net. (Source: Company statement/Reuters)

Novartis (Pharma) - $NOVN (+1,3 %) Plant 23 billion US$ for the expansion of 10 US sites (including 6 new production plants and an R&D center in San Diego)reuters.com. This five-year investment offensive (announced on April 10, 2025) comes two days after Trump announced "big tariffs" on drug imports
reuters.com. Novartis wants to relocate the production of important drugs to the USA (>1,000 new highly qualified jobs plus ~4,000 jobs in construction and support)reuters.com
reuters.com. (Source: Company statement/Reuters)

Merck & Co (Pharmaceuticals) - $MRK (+0,86 %) In March 2025, the US pharmaceutical company (not to be confused with Merck KGaA) opened a new US$ 1 billion plant in North Carolina and announced plans to invest a total of ~8 billion US$ in the USA by 2028reuters.com
reuters.com. Trump is increasing the pressure on the industry to move production back and has threatened to impose 25 % tariffs on pharmaceutical products
reuters.com. Merck has responded by investing over USD 12 billion in US plants since 2018 and is continuing to expand in order to circumvent import tariffsreuters.com
reuters.com. (Source: Reuters)

Hyundai (Automotive) -$HYUD In March 2025, the South Korean manufacturer announced a package of 21 billion US$ of investments in the USAspectrumlocalnews.com. This includes, among other things US$ 5.8 billion for a new steel mill in Louisiana (approx. 1,400 jobs)spectrumlocalnews.com and a new e-car plant in Georgia (US$ 8 billion)which will create over 8,500 jobsspectrumlocalnews.com. Hyundai is thus increasing its US production capacity to over 1 million vehicles/year
autohaus.de
spectrumlocalnews.com. President Trump saw this as a success for his tariffs - Hyundai would "produce its steel in America and build cars in America and thus not have to pay tariffs"
autohaus.de
spectrumlocalnews.com. (Source: Company statement/Spectrum News)

Stellantis (Automotive) - $STLAM (+3,25 %) The Fiat-Chrysler/PSA Group provides 5 billion US$ to expand its US production facilitieswhitehouse.gov. The centerpiece is the reopening of the Belvidere plant (Illinois), which was shut down in 2023 to produce new models (including a mid-size pickup)automotivemanufacturingsolutions.com. This will create around 1,500 jobs for regular UAW employees will be restoredautomotivemanufacturingsolutions.com
automotivemanufacturingsolutions.com. This investment was announced in late 2024/early 2025 in connection with the new UAW collective bargaining agreement and Trump's auto tariffs (25% on imported cars from April 2025) agreed - Stellantis' Chairman met personally with Trump to "secure the future of the company"automotivemanufacturingsolutions.com. (Source: Company statement/FT/AMS)

TSMC (Semiconductor) - $TSM (+3,3 %) The Taiwanese chip contract manufacturer TSMC announced in March 2025 that it will invest an additional 100 billion US$ to invest in the USAreuters.com. The plan is to build five new factories over the next few years (three chip fabs, two packaging plants and a large R&D center)reuters.com
reuters.com. The background to this is US efforts to be less dependent on Asian chips (national security) - Trump emphasized that key semiconductors "be built here in the USA"reuters.com. TSMC's expansion is expected to create 40,000 construction jobs in four yearsreuters.com and reduce dependence on imports. (Source: Company statement/Reuters)

Apple (Electronics) - $AAPL (+1,39 %) The tech company announced 2025, 500 billion US$ to invest in US manufacturing and educationwhitehouse.gov. This enormous sum (over 4 years) includes already planned expenditures, but signals Apple's willingness, to relocate more production and value creation to the USA
reuters.com. Apple has been under pressure because many of its products (iPhone, Mac) are manufactured in China and are being targeted by Trump's China tariffs could be targeted by Trump's China tariffs. The investment pledge - including new US locations and supplier programs - is intended to help maintain exemptions from import tariffs and promote "Made in USA"reuters.com
reuters.com. (Source: Company statement/White House, Reuters)

Sources: Primary data from the companies and reports (F.A.Z., Reuters, Spectrum News, etc.), see citations.

39 Comentarios

TotallyLost@TotallyLost

10H

You can't make a serious assessment of that today.
1. the tariffs are not yet in force and those that are have not even been in force for a month.
2. the importers have filled their warehouses beforehand.
3. the ripple effects need time to become visible.

It will therefore not be possible to make a serious assessment until the beginning of Q3 at the earliest.
But probably not until after Q1 2026.

That's the same as cutting off a chicken's head and saying:
"Look, it's still running, it's fine, my hatchet didn't break the chicken" 🫠

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doyoueventradebro@doyoueventradebro

10H

@TotallyLost very fitting analogy!

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PaulPK@PaulPK

@TotallyLost And yet Habeck found in Trump a culprit for the downfall of the German economy today, and the ÖRR, experts and politicians are not tired of claiming Trump would ruin the US economy... 🤣😂🤣

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TotallyLost@TotallyLost

@PaulPK forget the politicians, which economists do you know who consider the idea + implementation to be a suitable means of achieving the goals propagated by Trump?

I can't think of any off the top of my head... If you can think of one, please let me know.

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PaulPK@PaulPK

@TotallyLost Everyone who sits in the US government comes to mind

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PaulPK@PaulPK

@TotallyLost Tariffs should not be viewed in isolation - this is just the beginning.

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TotallyLost@TotallyLost

@PaulPK lol, you realize that yourself, don't you? 🫠
I meant independent economists, of course.

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PaulPK@PaulPK

@TotallyLost I have supplemented the article above with the effects on the US economy so far - I am looking forward to Q2

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PaulPK@PaulPK

@TotallyLost Almost no economist will tell you that tariffs are good. I am a representative of the Austrian school and would never say that. However, I see this as a tactic and not the ultimate goal. And they seem to be working so far. Billions in investment in the US and negotiations with over 100 countries - all of which will turn out better for the US than the status quo. Fantasizing about the destruction of the US economy is typical of green-red ideologues.

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Robert@Baraccus

@TotallyLost who decides who is independent?

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TotallyLost@TotallyLost

@PaulPK I don't doubt that there is a plan, I doubt that the implementation will succeed...

To my knowledge, there is also no historical positive example of ... something like that (I don't even know what to call it) 😅

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Ver todas las 4 respuestas adicionales

Leo@MCKrummel-Divi-Holding

10H

Does the military count towards GDP 🤔.

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Mo@BigMo

10H

@MCKrummel-Divi-Holding
I think you mean the defense industry.
The direct economic contribution of the US defense industry to GDP is about 1-1.3%.

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PaulPK@PaulPK

@MCKrummel-Divi-Holding So 1.3% FROM the 1.8% :)

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S.A.T.@SATNL

Free trade trumps tariffs. Is the US going to produce it all by itself and cheaper ? Ofcourse not. So who is hurt ? US customers. Trump has very few and weak cards.

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McZed@McZed

It is of course easy to throw figures into the room without comparative values. 1.8% would be well below the figures for the last 4 years.

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PaulPK@PaulPK

@McZed Given the global downturn, this is not surprising - so the comparison with Germany and the EU is sufficient.

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KingC@RaphGM

@PaulPK the original forecast was 2.7% for the US, so 1.8% is actually dramatic.

Especially if you think these are self-inflicted economic problems...

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PaulPK@PaulPK

@RaphGM Iniefern - the tariffs are not even in force...

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KingC@RaphGM

@PaulPK they already are.

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PaulPK@PaulPK

@RaphGM Are suspended - and so far simply have 0 impact on GDP

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KingC@RaphGM

@PaulPK Not really, the basic tariffs on everything are still there, as are the tariffs on steel and aluminum, on China, Mexico and also Canada.

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KingC@RaphGM

@PaulPK That's why 12 US states are currently suing

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PaulPK@PaulPK

@RaphGM You're right about that. But I don't think it will stay that way for long.

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KingC@RaphGM

@PaulPK we hope!

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Simon@SimonSays97

10H

Surely the GDP forecast is serious😂 Too many living in a parallel world and still have too much money to buy every dip. I guess things won't really go downhill until enough brain-dead people have lost their jobs...

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financer_973@financer_973

I am not so optimistic.

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NichtRelevant@NichtRelevant

I don't know. Stellantis had just laid off people in the USA. The reports don't fit together.

Plants that are currently being completed or where construction sites are just starting were apparently already being planned before Trump took over the presidency in the USA. The new government cannot be held responsible for this either.

And of course, the list also omits which other companies are leaving at the same time. E.g. John Deere and others.

We will see how the USA looks in 1-2 years' time. Then I think it will be easier to judge Trump's actions and measures.

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PaulPK@PaulPK

@NichtRelevant No, you can blame the new government for all of the above. Not your john Deere example though: "The reasons for the production shift and related layoffs are not fully known. Some reports suggest that the decision was influenced by the reduction of tariffs under an agreement between the US, Mexico and Canada." - that was 2024. i will watch this every quarter now as i find it so exciting :)

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Nick@Nick-investing

About all the investment announcements: Apple already made similar announcements during Trump's first term and Biden's term. Just because you announce something doesn't mean you actually do it.

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PaulPK@PaulPK

🙄 It would also have been pointless under both

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Nick@Nick-investing

@PaulPK Even though 4 years are not over yet, so far Biden's record is better than Trump's. And of course you're ignoring the real point of my comment, announcements shouldn't be given too much credence.

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PaulPK@PaulPK

@Nick-investing It's a weak point for stock corporations - and at the time it made little economic sense - Trump's policies are forcing it.

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Jason M.@JasonMcMillen

@Nick-investing 1. the growth under Biden came from new debt, which Trump can now pay for... high interest rates and refinancing 2. shortly before the election, Biden let the oil reserves that are reserved for the military flow into the public domain at a certain point in order to push down prices. large quantities of oil had to be bought back later at a more expensive price 3. open borders led to millions of new workers who often work illegally, tax losses and more costs due to Border Patrol, military and police. Since Trump, illegal migration is down 93%. Employers have to hire people normally and pay more. bad in the short term good in the long term from a purely economic perspective. You can also argue that at some point it has to have a bad impact on the economy, as for example the regions on the border live in extreme insecurity when cartel members convicted of 3 counts of murder just walk across the border. Drug epidemics are on the rise, theft etc. So the rule of law that can no longer protect its citizens was on the decline under Biden. Every year 100,000s of Americans die from illegally imported drugs.

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Nick@Nick-investing

@JasonMcMillen 1. this diabolical Biden administration, fortunately no other US government has ever and will never run excessive budget deficits + certainly Biden is also to blame for the fact that the yield on 10-year US bonds has recently moved towards 5%. 2. replenishing oil reserves is a perfect explanation for the slump in American consumer sentiment and why US companies are suddenly so negative. 3. migration is certainly an issue, but I would argue that deporting millions of people when there is a labor shortage is a great recipe for success. Especially in jobs that Americans will fight over (construction, food industry). And anyone who believes that there will suddenly be no more drugs in the USA because the borders are closed is naive. 4) I wasn't a huge fan of Biden's economic policy on many points either, but that doesn't mean I have to pretend that Trump's erratic behavior is good, especially because he is throwing huge amounts of trust out the window.

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