ZURICH — The Swiss government will meet this week with executives from major pharmaceutical companies, including Roche and Novartis, as it seeks to reduce a newly imposed 39% U.S. tariff on Swiss exports, two sources told Reuters.
Economy Minister Guy Parmelin and Health Minister Elisabeth Baume-Schneider are expected to attend the talks, which could also involve other industry players. While pharmaceuticals are not currently covered by the new tariff, the sector faces possible levies of up to 250% pending the outcome of a U.S. national security review under Section 232.
Pharma is Switzerland’s largest export sector to the U.S., worth 32.75 billion Swiss francs last year and accounting for half of all Swiss shipments there. Extending the tariff to include medicines could cut Swiss economic output by more than 1%, one estimate warns.
U.S. President Donald Trump has urged drugmakers to lower prices in the American market, potentially prompting companies to offset losses by raising prices in Europe — a concern for Switzerland’s health ministry, which negotiates domestic drug prices.
The discussions may also explore encouraging Swiss pharmaceutical companies to expand their U.S. operations to help reduce Washington’s 38.7-billion-franc trade deficit with Switzerland. Novartis has already pledged $23 billion in U.S. investment, while Roche plans to invest $50 billion over the next five years, creating more than 12,000 jobs.
