Roche Criticizes US and China Protectionism, Calls Tariff Policy “Blackmail”.

Roche Chair Severin Schwan has strongly criticized rising protectionist trade policies in the United States and China, describing US tariff strategies as a form of “blackmail” during remarks at the Swiss Economic Forum in Interlaken.

Schwan warned that the world’s two largest pharmaceutical markets are increasingly using their economic dominance to force companies to shift value creation within their borders. He said this trend is significantly disrupting the global structure of the pharmaceutical industry.

According to Schwan, both the United States and China are pursuing policies that prioritize domestic production and investment, creating pressure on international pharmaceutical firms to adapt their supply chains and operational strategies.

The comments come after Roche, alongside other major pharmaceutical companies including Novartis, reached an agreement with the US government in late 2025. The deal includes price reductions for certain medicines produced by Roche subsidiary Genentech, in exchange for a temporary exemption from US pharmaceutical tariffs.

Roche has also committed to large-scale investment in the United States, reportedly totaling around $50 billion, as part of efforts to maintain market access and regulatory stability.

However, Schwan argued that such arrangements are not genuine partnerships but rather one-sided pressures imposed by powerful markets. He stated that companies are effectively forced into compliance under the “law of the strongest.”

In response to ongoing uncertainty, Roche has increased short-term exports to the United States while accelerating long-term plans to restructure its global supply chains. The company aims to reduce its dependence on politically sensitive markets, although Schwan acknowledged that such shifts could have negative consequences for other countries, including Switzerland.

The remarks highlight growing tensions between global pharmaceutical firms and major economic powers as trade policy becomes increasingly intertwined with industrial strategy.

Economiesuisse Calls US Forced Labour Allegations ‘Unfounded’.

Switzerland’s leading business federation, Economiesuisse, has strongly rejected recent US allegations of forced labour, describing the claims as “completely unfounded” and inconsistent with Swiss law.

Speaking at a media conference, Economiesuisse chief economist Rudolf Minsch stated that forced labour is strictly prohibited under Swiss legislation. He emphasized that Switzerland has fully complied with international labour standards and said, “Switzerland has done its homework.”

The statement comes in response to renewed tariff threats from the United States, which have raised concerns among Swiss exporters. According to Minsch, the current proposed 12.5% tariffs on Swiss goods are not expected to significantly disrupt the economy, as they are only slightly higher than the 10% tariffs proposed for European Union countries.

He explained that Swiss companies could gradually absorb the additional costs, adjust their supply chains, or pass some of the impact on to consumers if necessary. Compared to earlier trade tensions, the current situation is seen as less severe.

Minsch highlighted that previous tariff levels were far more damaging. He recalled that Switzerland once faced tariffs as high as 39% while the EU was subject to 15%, calling that period “the real blow” for Swiss exporters due to the wide competitiveness gap.

Despite ongoing uncertainty, Economiesuisse stressed that predictability in trade policy is more important for businesses than small differences in tariff rates. The organization noted that Swiss companies are better able to adapt when they have clear, long-term regulatory expectations.

Overall, Swiss industry leaders remain cautiously optimistic, stating that while trade tensions persist, the impact on Switzerland’s economy is expected to remain manageable.

US Proposes New Tariffs on Swiss Goods Over Forced Labour Concerns

The United States has announced plans to impose new tariffs of 12.5% on Swiss imports linked to allegations of goods produced using forced labour, escalating trade tensions between the two countries.

The move is part of a broader trade policy initiative under the US administration, which targets around 60 trading partners, including Switzerland. The US argues that affected countries have not done enough to prevent imports of products linked to forced labour practices.

According to a report from the US Trade Representative, Switzerland is among 54 economies that allegedly lack a clear legal ban on such imports. As a result, Washington is considering additional tariffs on 45 of these countries, including Switzerland.

However, certain products such as semiconductors, coffee, beef, and fruit would be excluded from the proposed tariff measures.

Other countries facing similar or lower tariff proposals include the European Union, Canada, the United Kingdom, Mexico, Indonesia, Pakistan, and several Asian and Latin American nations.

The proposal is still under review, but it signals increased pressure on Switzerland’s export-driven economy, particularly in sectors linked to global supply chains.

Swiss authorities have not yet issued an official response, but the issue is expected to be discussed further in upcoming trade negotiations.