This Reuters news article details the response of Swiss pharmaceutical companies Roche and Novartis to a newly announced U.S. tariff policy. President Donald Trump announced a 100% tariff on imported branded pharmaceuticals, but with a key exemption for companies actively building or investing in U.S. manufacturing. Both Roche and Novartis have publicly stated they do not expect the tariffs to affect them, citing significant, ongoing investments in U.S. facilities, including new construction and multi-billion dollar pledges. The article notes that the market reaction was minimal, with shares for both companies remaining stable. An equity strategist is quoted suggesting the tariff's impact will be limited, as most major pharmaceutical companies with existing U.S. operations will likely qualify for the exemption.
Swiss Pharma Giants Unfazed by New U.S. Tariff Threat
New U.S. Tariff Policy: President Donald Trump announced a 100% tariff on imports of branded or patented pharmaceutical products, set to take effect on October 1.
Key Exemption: The tariff will not apply to any pharmaceutical company that is in the process of building a manufacturing plant within the U.S.
Roche's Response: A spokesperson for Roche stated the company does not expect to be hit by the tariff, pointing to its Genentech unit's new facility in North Carolina and a $50 billion pledge for investment in U.S. manufacturing and R&D.
Novartis's Response: Novartis, which has made a $23 billion U.S. investment pledge, also stated the tariff should not have an impact, noting it has ongoing construction and expects to announce five new U.S. sites by the end of the year.
Market and Analyst Reaction: Investors appeared unconcerned, as shares in both companies traded slightly up. An equity strategist noted that the exemptions will likely apply to all major pharmaceutical companies with U.S. production, limiting the tariff's actual scope.