Switzerland Braces For 100% US Medicine Tariff

(MENAFN- Swissinfo) United States President Donald Trump has announced new tariffs on medicines, lorries and furniture produced outside the US. This content was published on September 26, 2025 - 08:43 6 minutes Keystone-SDA

• Français fr Trump annonce des droits de douane de 100% sur les médicaments Original Read more: Trump annonce des droits de douane de 100% sur les médicament

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From October 1,“we will apply a 100% tax on all branded and patented pharmaceutical products, unless a company BUILDS its pharmaceutical plant in America”, Trump wrote on his Truth Social platform.

+ How pharma became Switzerland's Achelles heel in the US

Until now, the Swiss pharmaceutical sector had escaped the 39% tariffs imposed on Switzerland by the Trump administration. But the Swiss pharmaceutical industry knew it was under threat of tariffs. Donald Trump had given pharmaceutical groups until the end of September to lower the prices of imported medicines, and had threatened to impose massive taxes on the industry if they failed to do so.

Novartis wants to bring down US prices

The Swiss pharmaceutical group Novartis is trying to bring down the price of medicines in the United States. Novartis is working with the government and trying to“find constructive solutions”, the group's CEO Vas Narasimhan said in an interview published in the Neue Zürcher Zeitung on Saturday. He called on countries outside the US to face up to their responsibilities by demanding a greater share for innovation. In Switzerland in particular, drug prices are far too low, he said.

The Federal Council and the pharmaceutical industry held talks on Monday to discuss the US customs policy. Economics Minister Guy Parmelin described the talks as“constructive”, but gave no specific details.

Asked about a possible increase in the price of medicines in Switzerland, Health Minister Elisabeth Baume-Schneider replied that this was not the issue, but rather“how we are working to enhance the value of the Swiss pharmaceutical industry in line with Parliament's mandate and the current legal basis”.

Trump's objectives

Tariffs on pharmaceutical products lead to higher prices. But according to Fredy Hasenmaile, chief economist at Raiffeisen, the US government is pursuing two objectives: in addition to lowering drug prices, it wants to repatriate production to the United States.

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This content was published on Jul 22, 2025 Donald Trump is pressuring the pharma industry with tariffs. But experts say that tariffs will have less impact on the industry than pricing.

Read more: Potential US tariff exemption for Swiss pharma is not necessarily a boo

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