Johnson & Johnson CEO is optimistic about pharma innovation in the U.S.

In a Friday interview with CNBC’s Jim Cramer, Johnson & Johnson CEO Joaquin Duato expressed optimism about the future of pharmaceutical innovation in the U.S., even as the Trump administration slaps tariffs on imported drugs and cuts research funding.

“We’ve been through ups and downs at Johnson & Johnson over our 140 years of history. I’m an optimist,” Duato said. “I believe in the strength of the life science industry in this country. I think that we will remain the leaders as we are today, the undisputed leaders in healthcare innovation.”

On Thursday, President Donald Trump announced the U.S. would impose a 100% tariff on “any branded or patented Pharmaceutical Product” entering the country, starting on Oct. 1. However, the duties will not apply to companies that are building drug manufacturing plants in the country, Trump said, including projects that are not yet completed. Earlier this week, the Trump administration drew an unproven link between autism and pregnant women’s use of acetaminophen, which is the main ingredient in Tylenol. The drug is made by Kenvue, a company spun off from Johnson & Johnson two years ago.

Duato highlighted Johnson & Johnson’s pledge to spend more than $55 billion to build four plants in the U.S., noting that the pharmaceutical giant has officially broken ground on a factory in North Carolina. He also said the company has maintained a manufacturing presence in the U.S. since its founding. Duato said Johnson & Johnson plans to “bring great manufacturing jobs into the country, in robotics, in cell therapy, in biologics, to bring great middle class jobs” with its hefty investment.

Duato also discussed a number of Johnson & Johnson’s new drugs, including a treatment for myeloma as well as one for bladder cancer that just received approval from the Food and Drug Administration.

“Here in this country, we have all the elements,” Duato said. “We have the universities, we have the research institutions. We continue to attract great talent. We have the capital markets, and we have companies like us that are able to develop those medicines.”