Swiss Pharma Industry Particularly Vulnerable To Trump Tariffs

(MENAFN- Swissinfo) Switzerland could also be targeted by the new US President Donald Trump. According to a study by the major bank UBS, the Pharmaceutical industry in particular has reason to worry.

This content was published on February 10, 2025 - 14:29 4 minutes Keystone-SDA

• Deutsch de Schweizer Pharmaindustrie besonders anfällig für Trump-Zölle Original Read more: Schweizer Pharmaindustrie besonders anfällig für Trump-Zöll

Pharmaceuticals account for 60% of all goods exported from Switzerland to the US. This means that significantly more medicines go to the US than are imported from there to Switzerland. It is well known that such trade surpluses are a thorn in Trump's side.

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The industry is therefore susceptible to tariffs, according to economists at UBS in a study published on Monday. In their opinion, such tariffs would be a problem. In the longer term, trade barriers could push pharmaceutical companies to move their production and research departments to the US.“Such a relocation would have a significant impact on Switzerland in terms of value creation and tax revenues.”

However, the experts put this into perspective. In their opinion, demand for price-inelastic pharmaceutical products would only react slightly in the short term, even if tariffs were introduced. In addition, some large pharmaceutical companies are already producing locally in the US. The expansion of new sites would not happen overnight, but would take several years.

Growth despite everything

All in all, the UBS experts continue to forecast economic growth of 1.5% (adjusted) for the Swiss in the current year despite the Trump administration's policies.“However, in the event of a very aggressive trade policy with comprehensive tariffs, both the global and Swiss economies are likely to grow at a significantly slower rate,” they qualify.

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