Trump Announces Pharma Tariffs to Boost U.S. Manufacturing

President Donald Trump announced a 100% tariff on branded and patented pharmaceutical imports, effective October 1, 2025, unless companies have commenced construction of U.S. manufacturing facilities. This move aims to incentivize domestic drug production and reduce reliance on foreign suppliers. Generic drugs remain exempt from the new tariffs.

Swiss Pharma Giants Ramp Up U.S. Investments

In response, Swiss pharmaceutical giants Roche and Novartis have committed substantial investments in U.S. manufacturing. Roche plans to invest $50 billion over five years, including expanding facilities in Indiana, Pennsylvania, and Massachusetts, and constructing new sites for gene therapy and next-generation weight-loss medications. Novartis has announced a $23 billion investment to build additional factories and research laboratories in the U.S.

Potential Challenges and Market Impacts

Despite these strategic investments, the new tariffs introduce uncertainties. Analysts caution that scaling up production to meet these targets may take years, leaving companies vulnerable to short-term price volatility and supply chain disruptions. Additionally, the broader geopolitical landscape remains fraught, with potential retaliatory measures from other countries.