Swiss Govt Meets with Roche, Novartis Amid US Tariff Uncertainty

Swiss ministers met with Roche and Novartis to discuss the pharmaceutical industry's situation amid US tariffs. The US imposed a 39% tariff rate on Switzerland, far higher than the 15% on the European Union. The ministers exchanged views on the current situation in the industry, and a wider roundtable with the industry is planned for September.

Swiss ministers held a meeting with executives from Roche Holding AG and Novartis AG to discuss the pharmaceutical industry's situation in the face of US tariffs. The Swiss government, led by Economy Minister Guy Parmelin and Health Minister Elizabeth Baume-Schneider, exchanged views on the current challenges facing the sector [1].

The US has imposed a 39% tariff rate on Swiss goods, significantly higher than the 15% levied on the European Union. Pharmaceuticals are currently exempt from these tariffs, but the industry remains concerned about potential future duties. The US is conducting a Section 232 national security review that could ultimately impose tariffs on drug imports of up to 250% [1].

The meeting comes as the Swiss government seeks to mitigate the impact of the tariffs. Both ministers are preparing a wider roundtable with the pharmaceutical industry, scheduled for September. The aim is to explore strategies to reduce the sector's vulnerability and ensure its continued growth and competitiveness.

The Swiss pharmaceutical industry is a major driver of the country's economy, employing over 50,000 people and generating 7% of Swiss GDP. Roche and Novartis, two of the largest Swiss pharmaceutical companies, have already pledged significant investments in the US to avoid steeper trade penalties. Novartis plans to spend $23 billion to build and expand 10 facilities, while Roche committed $50 billion over five years, promising more than 12,000 new jobs [2].

The meeting also discussed potential price adjustments in the European market. Any price cuts in the US could encourage companies to raise prices in Europe to offset revenue loss. This could be a concern for the Swiss health ministry, which agrees prices with pharmaceutical companies [1].

The Swiss government's commitment to reducing tariffs and maintaining a strong pharmaceutical industry highlights the sector's importance to the Swiss economy. The meeting is expected to yield strategies to navigate the challenges posed by US tariffs and ensure the continued growth and competitiveness of the Swiss pharmaceutical industry.

References:
[1] https://www.reuters.com/business/healthcare-pharmaceuticals/swiss-government-meet-pharma-firms-discuss-us-tariffs-2025-08-11/
[2] https://newsable.asianetnews.com/markets/novartis-rides-bullish-retail-mood-roche-faces-gloom-amid-swiss-us-trade-concerns-articleshow-gqcdxb4