Trade tensions between Switzerland and the United States have further eased, with Novartis and Roche expected to reach a drug pricing agreement with the U.S

On Wednesday, media reports citing informed sources revealed that the White House is expected to announce a drug pricing agreement with pharmaceutical giants Novartis AG and Roche Holding AG as early as Friday. This move will further ease the trade tensions between the United States and Switzerland following the tariff deadlock. Other pharmaceutical companies may also be included in this announcement, but specific details are still changing. In recent months, companies such as Pfizer Inc. and AstraZeneca Plc have reached agreements with the Trump administration to lower drug prices in certain cases in exchange for tariff relief. Last month, Switzerland reached a preliminary trade agreement that reduced tariffs on various domestic products, including watches, from 39% to 15%. Switzerland had faced the highest tariffs imposed by the Trump administration on any developed economy. Like gold and semiconductors, drugs were previously exempt from tariffs, but Trump had threatened to impose tariffs on them in the future. In the summer, Trump sent letters to 17 pharmaceutical companies requesting them to lower costs for a U.S. government insurance program, agree to provide drugs to consumers through a "Trump-branded" direct sales platform, and align future pricing with foreign market prices. In exchange, these companies received multi-year tariff deferrals and exemptions from certain potential regulatory actions. However, most companies that received Trump's letters have not announced agreements, including AbbVie Inc., Boehringer Ingelheim, Bristol-Myers Squibb Co., Gilead Sciences Inc., Amgen Inc., Johnson & Johnson, GSK Plc, Merck & Co., Regeneron Pharmaceuticals Inc., and Sanofi. Novartis confirmed that it is in discussions with the government and expressed its commitment to "finding constructive solutions to lower drug costs for Americans and address the price disparities between the U.S. and other high-income countries." A spokesperson for Genentech, a subsidiary of Roche, stated that the company is committed to working with the government to support its goal of reducing drug costs in the U.S., while also encouraging other countries to "reward biopharmaceutical innovation." White House spokesperson Kush Desai stated in a written statement, "Any reports regarding potential deals are merely speculation until President Trump or the administration formally announces them." In the process of advocating for tariff relief for pharmaceutical companies, domestic manufacturing has been a key factor. Last week, Novartis CEO Vas Narasimhan attended the groundbreaking ceremony for the company's manufacturing facility in North Carolina, which was also attended by FDA Commissioner Marty Makary The prices of pharmaceuticals paid by Americans are the highest in the world, which has always been a focus for Trump. Pharmaceutical companies argue that such pricing mechanisms help drive innovation and promote growth across the industry. Democrats have recently called for pharmaceutical companies to disclose more details to confirm whether these tariff reduction agreements can truly save costs for the U.S. government, as the contents of the relevant agreements have not been made public. Novartis has committed to investing $23 billion in the U.S. over the next five years and is establishing a direct-to-patient platform for its blockbuster psoriasis drug Cosentyx. The company reports its earnings in U.S. dollars, with approximately 41% of its revenue coming from the U.S. market, primarily driven by products such as the heart disease drug Entresto. Roche has stated that it will invest $50 billion in the U.S. over the next five years. Nearly half of its revenue comes from the U.S. market, mainly relying on blockbuster products such as Ocrevus for treating multiple sclerosis and Tecentriq for cancer treatment