Pharmaceutical company Sandoz seeks dialogue with Washington due to threat of 200% tariffs on medicines

The Swiss company Sandoz, one of the leaders in generic drug manufacturing, has announced its readiness to negotiate with American politicians. The reason for this move is Donald Trump's threat to impose large-scale customs duties on imported medications.

According to the proposed strategy, generic drug manufacturers will be forced to move their production facilities to the USA or face 100% tariffs, which are planned to increase to 200% starting from August 2028. Since over 90% of drugs on the American market are generic, such measures would have massive consequences for healthcare in the country.

In an official statement, Sandoz emphasized that it supports the aspiration for more affordable and cheaper medications for American patients and will work with the authorities to find optimal solutions. The situation is particularly delicate for the company, as it is already planning to close its only production site in the USA (on Long Island) by the end of 2026.

Analysts from Vontobel note that although Washington's goal is to bring production back to the USA and reduce dependence on countries with low production costs, this will likely lead to a jump in drug prices for end consumers. The market is already reacting to the uncertainty – Sandoz shares noted a decline of about 3% following the latest reports.