{"id":95569,"date":"2025-09-30T21:53:11","date_gmt":"2025-09-30T21:53:11","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/95569\/"},"modified":"2025-09-30T21:53:11","modified_gmt":"2025-09-30T21:53:11","slug":"pharma-tariffs-could-trigger-swiss-recession-warns-economist","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/95569\/","title":{"rendered":"Pharma tariffs could trigger Swiss recession, warns economist"},"content":{"rendered":"<p>    <img src=\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2025\/09\/663835276_highres.jpg\" width=\"1300\" height=\"867\" alt=\"medicine pack\" loading=\"eager\" decoding=\"sync\" fetchpriority=\"high\"\/><\/p>\n<p>                US President Trump announced tariffs of 100% on branded patented medicine.            <\/p>\n<p>            Keystone \/ Christian Beutler        <\/p>\n<p>            Listen to the article        <\/p>\n<p>            Listening the article        <\/p>\n<p>                Toggle language selector            <\/p>\n<ul class=\"read-aloud\/track-selector__options\">\n<li>\n<p>                            English (US)                        <\/p>\n<\/li>\n<li>\n<p>                            English (British)                        <\/p>\n<\/li>\n<\/ul>\n<p>            Generated with artificial intelligence.        <\/p>\n<p>        US tariffs on pharmaceutical products could lead to a recession in Switzerland, but their impact remains difficult to calculate until more is known about Donald Trump\u2019s intentions, according to a Zurich economics professor.\n<\/p>\n<p>        This content was published on    <\/p>\n<p>        September 30, 2025 &#8211; 14:44\n<\/p>\n<p><a href=\"https:\/\/www.swissinfo.ch\/eng\/latest-news\/\" rel=\"nofollow noopener\" target=\"_blank\"><strong>+Get the most important news from Switzerland in your inbox<\/strong><\/a><\/p>\n<p>On Friday, the US president said he wanted to apply \u201c100%\u201d tariffs on \u201cbranded or patented\u201d pharmaceutical products from October 1, \u201cunless a company BUILDS its pharmaceutical factory in America,\u201d he wrote in a message posted on his Truth Social platform.<\/p>\n<p>\u201cMany details are unclear,\u201d said Hans Gersbach, professor of economics and co-director of the Center for Economic Research at the Swiss Federal Institute of Technology ETH Zurich, in an interview with AFP.<\/p>\n<p>\n    More<\/p>\n<p>    <img src=\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2025\/09\/784dce6d6cccaa5ff4257e24646ea94f8fd11227-90069328.jpg\" width=\"1400\" height=\"1050\" alt=\"Trump announces 100% tariffs on medicines\" loading=\"lazy\" decoding=\"async\" fetchpriority=\"auto\"\/><\/p>\n<p>        More    <\/p>\n<p>        Global trade\n        <\/p>\n<p>        Switzerland braces for 100% US medicine tariff    <\/p>\n<p class=\"teaser-wide-card__excerpt\">\n<p>                        This content was published on                    <\/p>\n<p>                        Sep 26, 2025                    <\/p>\n<p>                Switzerland braces for impact of US 100% pharmaceutical tariff.            <\/p>\n<p>    <a class=\"teaser-wide-card__link\" href=\"https:\/\/www.swissinfo.ch\/eng\/global-trade\/trump-announces-100-tariffs-on-medicines\/90069696\" target=\"_self\" rel=\"nofollow noopener\"><\/p>\n<p>            Read more: Switzerland braces for 100% US medicine tariff<br \/>\n    <\/a><\/p>\n<p>\u201cIf a large proportion of exports to the United States in the pharmaceutical sector were to be subject to tariffs, and remain in place for a long period of time, there would be a clear risk of recession in Switzerland,\u201d he said.<\/p>\n<p>However, he insists that the scope of these tariffs remains \u201cparticularly vague\u201d for the time being, and that it will therefore be necessary to wait and see exactly which companies and pharmaceutical products will be affected in order to fully assess the repercussions for the Swiss economy.<\/p>\n<p>This research centre affiliated with the University of Zurich has developed a model that can quickly calculate the impact of a shock on trade, such as customs duties.<\/p>\n<p>On August 1, when Washington imposed 39% tariffs on Switzerland, the research centre was able to produce an initial assessment within a few hours, estimating the impact on Switzerland\u2019s gross domestic product (GDP) at between 0.3% and 0.6%.<\/p>\n<p>This was \u201ca major shock\u201d for the Swiss economy, but according to this model, a recession seemed \u201cavoidable,\u201d explains Gersbach.<\/p>\n<p>This is because the 39% mainly affects watchmaking, machine tools and precision instruments (such as measuring instruments) and food products.<\/p>\n<p>However, customs duties on medicines, which were previously exempt, would change the situation given the importance of the pharmaceutical industry in the Swiss economy.<\/p>\n<p>\n    More<\/p>\n<p>    <img src=\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2025\/09\/659996535_highres_ff1dde.jpg\" width=\"1300\" height=\"867\" alt=\"drugs on shelf\" loading=\"lazy\" decoding=\"async\" fetchpriority=\"auto\"\/><\/p>\n<p>        More    <\/p>\n<p>        Drug pricing\n        <\/p>\n<p>        How pharma became Switzerland\u2019s Achilles heel in US trade talks    <\/p>\n<p class=\"teaser-wide-card__excerpt\">\n<p>                        This content was published on                    <\/p>\n<p>                        Aug 6, 2025                    <\/p>\n<p>                The pharmaceutical industry\u2019s strength has made it a key vulnerability for Switzerland in trade talks with the US.            <\/p>\n<p>    <a class=\"teaser-wide-card__link\" href=\"https:\/\/www.swissinfo.ch\/eng\/drug-pricing\/how-pharma-became-switzerlands-achilles-heel-in-us-trade-talks\/89792388\" target=\"_self\" rel=\"nofollow noopener\"><\/p>\n<p>            Read more: How pharma became Switzerland\u2019s Achilles heel in US trade talks<br \/>\n    <\/a><\/p>\n<p>The chemical and pharmaceutical sector contributes \u201caround 7-8% of GDP\u201d in Switzerland, according to Gersbach, and is the sector that has contributed most to export growth in recent decades, he points out.<\/p>\n<p>In April, Roche and Novartis nevertheless announced huge investments in new plants in the US, where both groups already have major production centres. On Friday, the share prices of these two heavyweights in the Swiss sector showed little reaction on the stock market.<\/p>\n<p>\u201cLarge companies such as Roche and Novartis could be exempt, but many smaller companies will be affected,\u201d warns Gersbach.<\/p>\n<p>Faced with pressure to lower drug prices in the US, Novartis announced on Monday the launch of a new platform where its treatment called Cosentyx (used to treat several inflammatory diseases) will be sold directly to patients in the US at a significant discount.<\/p>\n<p>Adapted from French by DeepL\/jdp<\/p>\n<p>                How we work            <\/p>\n<p>We select the most relevant news for an international audience and use automatic translation tools to translate them into English. A journalist then reviews the translation for clarity and accuracy before publication.\u00a0\u00a0<\/p>\n<p>Providing you with automatically translated news gives us the time to write more in-depth articles. The news stories we select have been written and carefully fact-checked by an external editorial team from news agencies such as Bloomberg or Keystone.<\/p>\n<p>If you have any questions about how we work, write to us at\u00a0<a href=\"https:\/\/www.swissinfo.ch\/eng\/healthcare-innovation\/pharma-tariffs-could-trigger-swiss-recession-warns-economist\/mailto:english@swissinfo.ch\" rel=\"nofollow noopener\" target=\"_blank\">english@swissinfo.ch<\/a>.<\/p>\n<p>        Articles in this story    <\/p>\n","protected":false},"excerpt":{"rendered":"US President Trump announced tariffs of 100% on branded patented medicine. Keystone \/ Christian Beutler Listen to the&hellip;\n","protected":false},"author":2,"featured_media":95570,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[174],"tags":[584,61529,61530,61528,79,179,18,25823,135,19,17,11,32495,37772],"class_list":{"0":"post-95569","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-article","9":"tag-beat-drug-pricing","10":"tag-beat-global-trade","11":"tag-beat-healthcare-innovation","12":"tag-business","13":"tag-economy","14":"tag-eire","15":"tag-foreign-affairs","16":"tag-health","17":"tag-ie","18":"tag-ireland","19":"tag-latest-news","20":"tag-production-type-deepl-autotranslation","21":"tag-trade-policy"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/95569","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=95569"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/95569\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/95570"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=95569"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=95569"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=95569"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}