Swiss ministers are set to meet with pharmaceutical executives this week to discuss a new 39% U.S. tariff on exports, as the industry faces the added risk of potential drug import duties of up to 250%.
Novartis drew heightened retail chatter on Monday amid reports that Swiss ministers plan to meet this week with top pharmaceutical executives to address a fresh 39% U.S. tariff on Swiss exports.
Roche and Novartis are expected at the table, with other companies possibly joining, Reuters reported, citing people familiar with the plans.
Economy Minister Guy Parmelin and Health Minister Elizabeth Baume-Schneider are reportedly expected to lead the talks. Officials have confirmed that the meeting is on the calendar but have withheld details on who will attend and what will be discussed exactly.
The 39% tariff, introduced last week, currently applies to goods such as Swiss watches and chocolate, sparing pharmaceuticals for the moment. Even so, the industry faces lingering uncertainty as the U.S. conducts a Section 232 national security review that could ultimately impose tariffs on drug imports of up to 250%.
The talks may also reportedly cover ways to expand Swiss pharma investment in the U.S. as a means to ease trade tensions and potentially soften tariff measures.
Washington’s push for lower U.S. drug prices has added another layer of complexity. Any price cuts in the American market could encourage companies to raise prices in Europe to offset the revenue loss.
In Switzerland, drug prices are already slightly higher than the European average.
Pharmaceuticals remain Switzerland’s most valuable export to the U.S., generating 32.75 billion Swiss francs ($40.35 billion) last year and accounting for half of all Swiss shipments there. Extending the 39% tariff to cover the sector could shrink national output by more than 1%, according to estimates.
Swiss drugmakers have already pledged major U.S. spending to head off steeper trade penalties. Novartis announced a $23 billion plan to build and expand 10 facilities, while Roche committed $50 billion over five years, promising more than 12,000 new jobs.
Despite these commitments, retail sentiment on Stocktwits was “extremely bearish” for Roche amid “low” message volume, while Novartis drew a “bullish” outlook alongside “high” message volume.
Novartis’ stock has risen 25% so far in 2025, while Roche’s U.S.-listed shares climbed nearly 10% over the same period.
($1= 0.81 Swiss Franc)
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