Novartis AG (NYSE:NVS) has reportedly built up its pharmaceutical stockpiles in the U.S. as a cushion against the potential impact of tariffs under consideration by the Trump administration, chief executive Vas Narasimhan said in a recent interview.

Currently, U.S. tariffs do not apply to pharmaceuticals, despite the 39% levy Washington imposed on Swiss imports last month. However, the industry is watching closely as an investigation could still lead to sector-specific duties.

In July, the U.S. and European Union struck a bilateral trade deal that introduced a 15% tariff on pharmaceuticals, excluding some generics. Reuters notes that while that deal altered the global trade outlook, Novartis stated ...