The medical-device maker is the latest company to pledge expansion of domestic manufacturing to secure an exemption from Trump administration tariffs
By Kelly Cloonan
Becton Dickinson inked a deal with the Trump administration to invest $19 billion in the U.S. in exchange for relief from future tariffs.
The move makes the needle- and medical-device maker the latest company to pledge to expand domestic manufacturing to secure an exemption from the Trump administration's tariffs.
A wide array of companies - from tech giants like Apple and Micron to pharmaceutical players like Eli Lilly and Johnson & Johnson - have entered similar agreements as President Trump seeks to revive domestic manufacturing.
Becton Dickinson said it would make its investment in the U.S. over several years, with plans to put $3 billion of the total amount toward expanding its U.S. manufacturing.
In a Monday social media post outlining part of the deal, President Trump said Becton Dickinson would ramp up production in Nebraska in particular with a more than $1 billion investment in the state.
Trump added that he would put medical device tariffs in place by the end of the year.
"BUILD IN AMERICA, HIRE AMERICAN WORKERS, AND TREAT AMERICAN PATIENTS FAIRLY - OR PAY!" Trump said in the post.
Becton Dickinson said it also plans to produce an additional five billion medical consumables in the U.S. annually - which it said would raise its share of domestically supplied essential medical consumables to roughly 80% - and domestically manufacture all of its needles used in the U.S. using American-made steel.
In exchange, Becton Dickinson would get relief from future tariffs imposed on its covered products and inputs. The Franklin Lakes, N.J., company said it is not yet quantifying the financial effect of the agreement because that part of the deal is subject to the final scope and implementation of any future tariff policy changes, as well as its achievement of agreed milestones.