Roche Engages US Government for Tariff Relief on Imports
By Ludwig Burger
(Reuters) -Swiss drugmaker Roche is petitioning the U.S. government in direct talks for import tariff exemptions, arguing the products it ships into the United States are offset by its exports of U.S.-made drugs and diagnostics.
"As long as we produce the same amount in the U.S. as we import ... we would not be impacted by tariffs. That’s kind of the discussion we are trying to have with the U.S. government," CEO Thomas Schinecker said in a media call after the release of first-quarter sales figures.
He added that Roche was in touch with various levels of President Donald Trump's administration, arguing that a U.S. drive for all goods used in the country to be produced there would inflate manufacturing costs.
"For diagnostics, when you have 10,000 products, you cannot produce 10,000 products in every country," said Schinecker.
He said Roche was arguing it would "produce as much in volume as you use in the U.S., because some of that you may export".
The Swiss drugmaker said on Tuesday it would invest $50 billion in the United States over the next five years, creating more than 12,000 jobs, in the latest massive investment by companies reacting to Trump's tariff policy.
Schinecker said on Thursday this announcement would not translate into less funding earmarked for sites elsewhere in the world and that Roche was also not increasing its overall budgets for global investments, research and development.
Roche earlier on Thursday confirmed its full-year financial guidance and reported a forecast-beating 7% rise in first-quarter sales, driven by breast cancer drug Phesgo, eye drug Vabysmo and allergy treatment Xolair.
(Reporting by Ludwig Burger and Patricia Weiss. Editing by Rachel More and Mark Potter)
