Merck, a prominent US pharmaceutical company, anticipates a significant increase of $200 million in costs this year due to tariffs imposed by President Donald Trump on imports worldwide. These costs include retaliatory tariffs imposed by foreign governments, particularly China. However, these projections do not factor in potential additional tariffs specifically targeting pharmaceutical imports, as the Trump administration initiated a national security investigation into the industry. Trump aims to bring back jobs and taxes from pharma companies manufacturing drugs outside the US, notably in countries like Ireland, which has drawn criticism.

In response to the tariffs, Swiss company Roche is seeking exemptions and has emphasized its substantial investments in the US, planning to invest $50 billion there. Roche’s chief executive highlighted the company’s efforts to mitigate tariff exposure by relocating production of key medicines to the US. Despite facing uncertainties due to the tariffs, Roche remains optimistic about its position and stressed the challenges of producing a wide range of drugs in various countries.

The pharmaceutical industry, which benefits from zero tariffs globally under a 1995 World Trade Organization agreement, faces potential disruptions from Trump’s proposed tariffs on drug imports. Roche continues to engage with the Trump administration to address concerns about increasing manufacturing costs and maintain its financial outlook. Trump’s tariff plans have created uncertainty in the industry, impacting shares and highlighting the complexities of the global pharmaceutical supply chain.