Swiss pharma faces potential US trade investigation as Washington turns up pressure on drug pricing

Switzerland’s pharmaceutical giants are bracing for impact. Interpharma, the Swiss industry body, warned on June 26 that the country is a potential target for a US trade investigation into how it prices and reimburses drugs, a move that could threaten roughly $35.5 billion in annual pharma exports to America.

The warning lands just eight days after the US launched a formal Section 301 investigation into Germany, accusing Berlin’s policies of systematically underpaying for innovative pharmaceutical products.

The Germany playbook, now aimed at Bern

Section 301 is the same trade tool the US has wielded against China for years. It lets the administration investigate foreign practices it considers unfair and, if the findings warrant it, slap tariffs on imports from the offending country. The Germany investigation specifically targets what the US calls “persistent underpayments” for innovative drugs, alleging these practices harm American commerce.

Public hearings on the German probe are scheduled for September 22, 2026. Switzerland appears to be next in the queue.

Interpharma CEO René Buholzer said Switzerland is “a potential target” and pointed to ongoing revisions in Swiss health insurance ordinances as a contributing factor. The concern is straightforward: if Switzerland reforms its drug pricing system in ways that lower reimbursement rates, it hands Washington a ready-made argument that Swiss policies are squeezing American pharma companies out of fair compensation.

What $35.5 billion in exports looks like

Pharmaceutical exports are Switzerland’s largest export category. The two companies most exposed are Roche and Novartis. Both are headquartered in Basel, both generate enormous revenue from the US market, and both have historically responded to American trade pressure by pledging more investment on US soil.

The US has previously threatened tariffs averaging 39% on Swiss goods, though pharmaceutical products have been carved out at a cap of 15% under prior agreements. Even a 15% tariff on $35.5 billion worth of exports would represent a serious financial hit, potentially adding billions in costs that would need to be absorbed somewhere along the supply chain.

The bigger picture: Washington’s drug pricing crusade

The US administration has been escalating pressure on foreign drug pricing, driven by the argument that American patients pay more for prescription drugs than people in virtually every other developed country, and that those higher prices effectively subsidize cheaper drugs abroad. By threatening trade investigations and tariffs, Washington is essentially telling foreign governments to raise what they pay for drugs, or face consequences on their exports.

For Switzerland, the timing is particularly awkward. The country has been working on its own healthcare cost reforms, adjusting ordinances that govern how drugs are priced and reimbursed within its borders. Those reforms were designed with Swiss patients and budgets in mind, not with an eye toward satisfying US trade negotiators.

What this means for investors

Investors holding Roche or Novartis stock should be watching two things closely. First, whether the US formally initiates a Section 301 investigation into Switzerland, which would set a clock ticking toward potential tariff action. Second, how the September hearings on Germany play out, since they’ll establish the template Washington uses for similar cases.

Both companies have a well-worn playbook for handling US trade pressure: announce expanded American manufacturing, highlight US job creation, and negotiate behind the scenes.

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