Trump Tariffs Threaten Swiss Pharma Industry, US Consumers
The Trump administration's new pricing policy and tariffs are causing concern in the Swiss pharmaceutical industry. While large corporations like Roche and Novartis have options to mitigate the impact, smaller companies may struggle to access the US market.
More than a quarter of Swiss pharmaceutical exports go to the USA, making the industry vulnerable to the impending 100% tariffs on imported patented medicines. These tariffs, set to take effect in October, threaten to increase prices for US consumers and could lead to a reversal of the policies before the midterm elections in 2026.
The tariffs are also a price driver, putting pressure on companies' margins and jeopardizing Switzerland's status as a research and manufacturing location. While Roche and Novartis have announced significant investments in US production and R&D, smaller companies may not have the opportunity to expand into the USA, making the tariffs a problem for the industry as a whole. Setting up a new factory in the USA is a costly and uncertain process, and the decentralization and regionalization of production may not be enough to offset the impact of the tariffs.
The Trump administration's policies pose a long-term threat to research and development and Switzerland's business location status. While large corporations have stockpiles and investment options to mitigate the impact, smaller companies may find it more difficult to access the US market. The potential increase in prices for US consumers could lead to a reversal of these policies before the midterm elections in 2026.
