Swiss Pharma Giants Unfazed by U.S. Tariff Threat

Swiss pharmaceutical giants Roche and Novartis are not concerned about potential impacts from President Trump's latest announcement of a 100% tariff on imported branded drugs. This confidence stems from their ongoing billion-dollar investments in U.S. manufacturing and research facilities.

Roche has commenced construction on a new facility in Holly Springs, North Carolina, as part of its $50 billion U.S. investment pledge, while Novartis plans to initiate construction on five new sites by year-end. Both companies expect these moves will qualify them for exemptions from the tariffs.

While the U.S. market responded with minimal fluctuations in Roche and Novartis shares, experts like Wolf von Rotberg of J. Safra Sarasin Sustainable Asset Management caution against withdrawing investments in the pharmaceutical sector, given the likelihood of tariff exemptions for firms with substantial U.S. projects.

(With inputs from agencies.)