In a strategic move to bolster domestic operations amidst escalating global trade tensions, Abbott Laboratories has unveiled plans to invest $500 million in new manufacturing and research facilities in the United States. The initiative includes the establishment of two new sites in Texas and Illinois, expected to commence operations by the end of the year, creating approximately 300 new jobs—200 in Illinois and 100 in Texas .
This investment comes as the Trump administration intensifies tariffs on key trade partners, notably China, which plays a significant role in supplying raw materials for the pharmaceutical and medical device industries. Abbott’s decision aligns with a broader industry trend of reshoring manufacturing to mitigate risks associated with international supply chains and regulatory uncertainties .
Despite the challenging trade environment, Abbott reported strong first-quarter earnings, with adjusted net income rising to $1.92 billion, or $1.09 per share, surpassing analyst expectations. The company’s medical device segment was a key contributor, experiencing a 10% increase in sales to $4.9 billion .
CEO Robert Ford noted that while the company considered raising its full-year earnings guidance, it opted for caution due to the potential impacts of the new tariffs. Abbott maintains its 2025 profit forecast of $5.05 to $5.25 per share .
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