The pharmaceutical industry isn’t happy about President Donald Trump’s trade war and is reportedly lobbying the President to slow down drug tariffs. According to Reuters, members of this industry are asking President Trump to introduce pharmaceutical tariffs at a lower rate than others. This would give them time to shift manufacturing to the U.S. and avoid the tariffs.
While pharmaceutical tariffs aren’t expected on Wednesday, Trump’s “Liberation Day,” the President has signaled they are coming. The pharmaceutical industry wants to get ahead of any tariff implementation to avoid being caught off guard like the auto and metal sectors were when tariffs were introduced.
News of the pharmaceutical industry lobbying the President comes after he announced that his new tariffs this week will target all countries, and not just those with a trade deficit. This surprise announcement caught many industries off guard, resulting in chaos for the stock market.
How This Affects Pharmaceutical Stocks
Pharmaceutical stocks have been on a wild ride in 2025, with some shares rising and others falling. Much of this has to do with President Trump’s administration. News that shook the industry on Monday included a top vaccine regulator at the U.S. Food and Drug Administration (FDA) being forced to step down. This caused vaccine stocks to sink yesterday.
Health and Human Services Secretary Robert F. Kennedy Jr. has also been incredibly critical of the pharmaceutical industry. The new HHS head prefers a more natural approach to “Make America Healthy Again” than relying on weight loss drugs and other treatments.
Which Pharmaceutical Stocks are Worth Buying?
Turning to the TipRanks stock comparison tool, traders will see which pharmaceutical stocks analysts recommend buying. Eli Lilly (LLY) and AbbVie (ABBV) are two pharmaceutical stocks with consensus Strong Buy ratings. However, LLY offers a much higher upside potential at 23.83% compared to ABBV’s 2.89%.
