The draft of a trade accord between the U.S. and Switzerland contains a provision that the European country will receive preferred treatment in the ongoing national-security investigations to avoid tariffs on pharma exports, according to people familiar with the matter.

The clause doesn’t constitute a guarantee that Washington will hold off on putting tariffs on the industry considered vital by the Swiss, the people said, speaking on the condition of anonymity. They said the wording is framed as a pledge for both parties to cooperate to avoid such a move via the so-called Section 232 probe. The people cautioned that details are still being finalized, and negotiations remain fluid until an announcement is ready.

The draft also requires a nod from Donald Trump, while the Swiss government has already implicitly agreed, one of the people said. As soon as the U.S. president signs off, formal approval from Bern would happen very quickly, they added.

Novartis AG and Roche Holding AG — the two biggest drugmakers in Switzerland — jumped on the news with shares rising as much as 2.9% and 2.5% respectively in afternoon trading. Other Swiss pharma companies also rose with generic drugmaker Sandoz Group AG up as much as 3.3%. 

Switzerland is among several countries trying to negotiate a bilateral trade deal with the U.S. to avoid an increase of Trump’s tariff of 10% to a higher level designated on April 2 — 31% in Switzerland’s case — when a 90-day reprieve expires on July 9. Being spared the threat of future pharma duties was one of the key asks from Swiss negotiators.

Switzerland’s Economy Ministry declined to comment. A spokesman for the White House said that “discussion about any potential trade deal should be considered speculation unless officially announced by President Trump.”

The Trump administration launched a probe in mid-April that could open the door to tariffs on pharmaceutical imports. Under the Section 232 investigation, the Commerce Department has as long as 270 days — or about nine months — to determine whether the foreign production of drugs is a threat to national security, though it can release the findings much more quickly. 

Switzerland is a major exporter of drugs to the U.S., with pharmaceuticals accounting for almost half of Swiss goods exports to America in 2024, according to data compiled by Bloomberg Economics. For companies including Novartis and Roche, the U.S. is the most profitable market, as is the case for many producers of medicines.

Similar to provisions in a U.S.-UK framework deal signed in May, the draft U.S.-Switzerland pact also agrees that the Swiss will strive to meet U.S. requirements for the security of supply chains. That’s a push for pharma companies no longer sourcing certain ingredients from China, one of the people said. The respective clause in the accord with the U.K. was publicly criticized by Chinese officials.