Celltrion announced on Tuesday that it has already implemented structural measures to address tariff risks in response to President Donald Trump’s declaration to reinstate drug tariffs to pre-trade agreement levels.
In a shareholder notice issued that morning, Celltrion emphasized that they’ve secured a fundamental solution to tariff issues by acquiring production facilities in Branchburg, New Jersey, effectively shielding us from all associated risks.
The company stated that the Branchburg facility commenced operations earlier this month with an opening ceremony attended by key local officials. It plans to utilize this site as its primary hub for manufacturing products destined for the U.S. market. They’re set to swiftly ramp up production to ensure seamless product supply in coordination with the direct sales efforts.
Celltrion further elaborated that to mitigate uncertainties surrounding U.S. tariffs, they’ve developed customized response strategies for various scenarios. While it transitions to producing for local sales at the U.S. facility, it’ll leverage its two-year supply already stateside to maintain tariff-free product sales.
The company added that by implementing both short-term and long-term strategies in the U.S., it aims to neutralize any potential impact from future tariff policies. It’ll continue to closely monitor local market conditions to ensure uninterrupted business operations.
On Monday, President Trump announced his intention to immediately raise tariffs on Korean automobiles, lumber, and pharmaceuticals from 15% to 25%, citing the Korean National Assembly’s alleged non-compliance with the bilateral trade agreement.