US–Swiss Tariff Cap Impact on Pharma: How the New US–Swiss Tariff Cap Shapes Pharma and Health Security

Switzerland’s new understanding with the US goes beyond a minor tariff tweak and directly touches the country’s role as a pharma and med‑tech hub. Under a November memorandum of understanding, Washington will cap the country‑specific additional tariff on Swiss goods at 15%, bringing Switzerland into line with the EU and EFTA - while key pharmaceutical products remain largely exempt from the surcharge but under continued scrutiny.​

What the Switzerland–United States deal does

The US had previously imposed an extra 39% country‑specific tariff on Swiss exports on top of normal MFN duties; this will now be cut to a ceiling of 15% under the declaration of intent with Switzerland and Liechtenstein.​

Existing exemptions for pharmaceuticals and certain chemicals, which already faced 0% additional tariffs, continue under annex arrangements, and any future sectoral tariffs on Swiss pharma and semiconductors under ongoing Section 232 national‑security investigations are explicitly capped at 15%.​

Why the Swiss health ministry cares

The Federal Office of Public Health (BAG) notes that, although pharma has long been treated as an exception, US deliberations on drug prices and Section 232 still pose strategic risk to a sector that accounts for roughly half of Swiss goods exports to the US and a meaningful share of domestic value added.​

BAG is monitoring the impact of US tariff policy and related pricing pressure on Swiss market access, supply security and incentives to keep high‑value manufacturing and R&D in Switzerland, and is coordinating with other federal bodies on measures to keep the country attractive as a life‑sciences base.​

Trade leverage and drug pricing

The US has paired its tariff flexibilisation with a broader campaign to secure lower domestic drug prices, using the threat of high import duties as leverage to extract investment and pricing concessions from multinational manufacturers, including Swiss‑based groups.​

US-Swiss Tarrif Cap Impact on Pharma (Like Roche and Novartis)

In the short term, capping tariffs and preserving pharma exemptions lowers the risk of sudden cost shocks on imported medicines and components, supporting continuity of supply for Swiss patients and insurers.​

Over the medium term, if Swiss manufacturers face tighter US net prices while retaining strong export conditions, Swiss payers could come under pressure from industry to accept higher domestic prices or more flexible reimbursement terms to maintain global revenue targets, a dynamic BAG will need to factor into future pricing and reimbursement policy discussions