Roche Expects Diagnostics to Face Renewed US Tariffs
Chairman Severin Schwan says Roche medicines should remain exempt from US tariffs. However, the diagnostics unit faces renewed duties after an initial 150-day window.
Roche Holding AG expects its pharmaceutical division to remain shielded from current import tariffs in the United States, though its diagnostics business remains vulnerable to potential duties. Chairman Severin Schwan indicated that while a previous agreement with the American government provides a reprieve for medicines, the diagnostics sector could face renewed pressure once an initial 150-day period expires. The company was among several major pharmaceutical firms that reached an accord with the U.S. administration in December. Under the terms of that deal, the companies agreed to lower medicine prices in exchange for a three-year exemption from tariff threats. Schwan expressed confidence in the longevity of this arrangement for the pharmaceutical side of the business during an interview with the Swiss newspaper Neue Zuercher Zeitung. > "As far as pharmaceuticals are concerned, we assume our agreement with the government is binding and that we will continue to be exempt from tariffs on the import of medicines." However, the outlook for the diagnostics division is less certain. This segment, which recorded sales of nearly 14 billion Swiss francs in 2025, relies heavily on exporting tests and medical instruments from Switzerland and other European nations to the American market. Schwan noted that the diagnostics business continues to be significantly affected by the shifting trade landscape. The chairman also highlighted a complex situation involving China. Roche produces certain diagnostic products within the U.S. that are subject to import tariffs from the Chinese market. Due to retaliatory measures, the company finds itself in a position where it is paying duties twice as a net exporter from the U.S. > "But because China has introduced retaliatory tariffs, we end up, as a U.S. net exporter, paying tariffs twice." Looking ahead, Schwan anticipates that the U.S. government may seek to reimpose import tariffs under different legal frameworks once the current 150-day limit concludes. Despite these logistical and financial hurdles, the chairman dismissed any suggestions that the company might divest its diagnostics operations. > "That is not a topic at all. We are sticking with it."
