GE is investing $3 billion in domestic manufacturing amid Trump tariffs

GE Appliances announced Wednesday that it will pour more than $3 billion into its U.S. manufacturing over the next five years, shifting some production from China and Mexico in a move that could soften the impact of tariffs.

President Donald Trump has introduced levies on imported goods to incentivize companies to make more products domestically and create American jobs.

“No other appliance company over the last decade has invested more in U.S. manufacturing than we have,” said Kevin Nolan, president and CEO of GE Appliances, in a press release.

Nolan told The Wall Street Journal that while the firm has historically sought to build its products close to its biggest markets, trade considerations played a role in Wednesday's announcement.

“I think it’s become obvious with tariffs that building in the U.S. is a good thing right now,” he said.

Shares in GE Appliances fell more than 3% on Wednesday morning.

The company said the spending will add 1,000 jobs across five states, expand its air conditioning and water heating product lines, boost output, and modernize its 11 U.S. factories with upgraded automation and capital equipment.

Earlier this year, rival Carrier Global announced a similar plan to invest $1 billion in its U.S. operations over the same time frame.

By the end of the new initiative, GE Appliances will have committed $6.5 billion to its American manufacturing plants and distribution network since Chinese electronics giant Haier acquired the company from General Electric in 2016. This sum includes a previously announced $490 million upgrade to its washing-machine plant in Louisville, Kentucky, where the company is headquartered.

GE Appliances isn’t the only company to ramp up U.S. production in response to pressure from the Trump administration. Taiwan Semiconductor Manufacturing Co. (TSMC) has been fast-tracking U.S. expansion projects in anticipation of potential tariffs, The Wall Street Journal reported in July. 

Pharmaceutical companies have also unveiled plans to boost domestic manufacturing following moves to impose duties on imported medicines.

AstraZeneca announced last month that it will invest $50 billion in the U.S. by 2030 to fund manufacturing and research and development (R&D), adding to similar pledges from Biogen, Eli Lilly, Johnson & Johnson, Novartis, and Roche. So far this year, pharma companies have promised to invest at least $231.3 billion in the U.S. in the coming years.