President Donald Trump announced a phased tariff plan on pharmaceutical imports to the United States, starting with a small tariff and increasing to 150% within 18 months, eventually reaching 250%. The intent behind these tariffs is to boost domestic pharmaceutical production. The initial implementation of tariffs on a wide range of Swiss imports, including watches, machinery, and chocolate, occurred on August 7, 2025, with pharmaceuticals largely exempt at that time. European pharmaceutical companies are preparing for the impact of the proposed tariffs, which could reach up to 250% on medicines imported from the European Union. In response, Swiss government leaders have sought discussions with major pharmaceutical firms such as Roche and Novartis and plan to hold a crisis summit to address the future of the Swiss pharmaceutical industry amid these tariff pressures. Economic forecasts indicate that extended tariffs may worsen the economic outlook compared to earlier predictions. Additionally, data from June shows that foreign exporters absorbed 14% of U.S. tariffs, U.S. companies absorbed 64%, and U.S. consumers bore 22% of the costs. With tariffs becoming permanent and increasing in rate, companies are expected to pass more of these costs onto consumers, potentially increasing the impact on personal consumption expenditures from 0.2% to 0.66% by the end of the year. The tariffs have also begun to affect domestic furniture and recreational goods markets in the U.S., although services have remained relatively unaffected so far.