Novartis Declares Tariff Resilience Amid TikTok Deal, US-China Trade Progress
Swiss pharmaceutical giant Novartis stated Wednesday it is prepared to navigate potential tariffs stemming from escalating US trade tensions, while a deal allowing TikTok to continue operating in the United States signals a potential thaw in broader US-china trade relations. The developments arrive as the Supreme Court prepares to review the legal basis of president Trump’s tariff policies this fall.
The resilience declared by novartis comes as GlaxoSmithKline (GSK) announced a $30 billion investment in US research and progress, a move coinciding with Trump’s threats to impose import tariffs on the pharmaceutical industry and bolster domestic manufacturing. Treasury Secretary Scott Bessent, following talks with Chinese trade officials in Spain, expressed confidence in nearing a trade agreement with China, even as reciprocal tariffs are slated to take effect in November.
The TikTok agreement, details of which were not immediately disclosed, represents a key step toward de-escalation. Meanwhile, the Supreme Court has expedited review of challenges to Trump’s tariffs, scheduling oral arguments for early November. The case centers on the legality of the “reciprocal” country-specific duties-ranging from 10% to 50%-imposed under the International Emergency Economic Powers Act (IEEPA) of 1977.