Tip-toeing around the issue, Novartis CEO stated that his company avoided U.S. tariffs

Novartis expects to avoid exposure to U.S. tariffs by mid-2026, according to CEO Vas Narasimhan who spoke at the World Economic Forum in Davos.

“We expect to be in a position by middle of this year where we are not really exposed to tariffs, because we’re able to produce in the U.S. for the U.S. We have inventory on hand,” Narasimhan told CNBC.

The Swiss pharmaceutical giant’s chief executive added that he believes Novartis has an agreement with the U.S. government that would exclude the company from tariffs. “We also have an agreement with the US government that excludes us from any tariffs we think,” he said.

Narasimhan’s comments come as U.S. President Donald Trump has announced plans to impose 10% tariffs on several European countries including the U.K., Denmark, Norway, Sweden, France, Germany, the Netherlands, and Finland by February 1. These tariffs are set to increase to 25% from June 1.

The CEO indicated that Novartis is investing in regional supply chains as part of its strategy to mitigate potential tariff impacts. This approach aligns with the company’s previously announced $23 billion investment in manufacturing facilities.

“In case that were not to be the case, we’re also future-proofed in the other direction as well,” Narasimhan noted, suggesting the company has contingency plans in place regardless of how tariff policies develop.