U.S. drugmaker Merck said on Tuesday it is investing $1 billion in a new Delaware plant to expand domestic production as it prepares to deal with President Donald Trump's tariffs. The new facility will produce biologic drugs and Keytruda,

Merck CEO Robert Davis spoke about the new state-of-the-art biologics center slated to be based in Wilmington, Delaware that could eventually provide thousands of jobs.

Merck is particularly exposed to the tariff threat, as much of its production of Keytruda takes place at facilities in Ireland and Singapore, in addition to its arrangements with contract manufacturers. Last year, Keytruda generated sales of $29.5 billion, accounting for 46% of the company’s revenue of $64.2 billion.