On July 8, US President Donald Trump shook the biopharmaceutical sector by announcing a tariff of up to 200% on pharmaceuticals, which would take effect “very soon.” 80% of prescription drugs sold in the US are made abroad, a statistic the President wants to flip on its head.

Yet the new pharma trade policy isn’t as it appears to be. In a July 8 White House cabinet meeting press event, Trump changed the timeline for the new tariffs to “about a year, year and a half.” After the meeting, Commerce Secretary Howard Lutnick said that more information on the new tariffs “will come at the end of the month.”

So far, pharmaceutical stocks don’t seem to be impacted one way or another by the 200% tariff call. Over the past five days, the benchmark S&P 500 Pharmaceuticals Index is actually up by 4.2%, which is consistent with its performance over the past month.

That would change quickly if the tariffs were to go into effect, as the effect on drug prices and on pharma stocks would be extreme. 

But whether the new policy goes into effect or not, three pharmaceutical companies are set to prosper anyway.

Let me show you why.

When the President first announced the new policy, pharmaceutical industry advocates warned that the tariffs would lead to higher drug prices, disrupt the sector’s supply chain, and negatively impact patients who rely on industry drugs.

“Every dollar spent on tariffs is a dollar that cannot be invested in American manufacturing or the development of future treatments and cures for patients,” noted Alex Schriver, senior vice president of public affairs for PhRMA, the industry’s biggest lobbying organization.

However, sector analysts aren’t too concerned about the new levies, if they ever arrive at all.

“Tariffs will not be implemented immediately,” said David Risinger, an analyst at Leerink Partners. “And it is unclear if the administration will follow through in the future.”

Others were more succinct.

“Tariffs schmariffs,” Jefferies analyst Akash Tewari stated in a July 9 research note.

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These 3 Big Pharma Stocks Should Thrive – Tariffs or No Tariffs

By and large, industry leaders seem unconcerned about the levy threat, as there’s no guarantee the tariffs will take effect, and because pharmaceutical companies have aligned with Team Trump and are pivoting to US-based research and manufacturing plants, they would likely feel little impact from US tariff hikes.

That’s especially the case with three key biosciences stocks that seem to be immune to the tariff troubles and that have plenty of reasons to feel good about their financial prospects going forward. Here’s a rundown.

Eli Lilly

Eli Lilly (NYSE:LLY) management may not be overly concerned about the tariff news, but it’s not embracing the trade policy tactic either.

In a May, 2025 conference call, LLY CEO Dave Ricks noted his opposition to trade tariffs, “We support the U.S. government’s goals to increase domestic investment. However, we don’t believe tariffs are the right mechanism.” While calling for tax incentives as a preferred income strategy, Ricks acknowledged tariffs would “have a negative effect on Lilly and our industry.”

In February, Indianapolis-based Eli Lilly announced it would establish four new manufacturing sites in the US, shortly after word got out that the White House was planning to hike tariffs globally.

The call for a 200% tariff on pharmaceuticals hasn’t penalized Lilly share-wise, as it’s only down 0.8% over the past month. Investors appear to be more concerned with pricing issues and aggressive competition in the GLP-1 weight loss drug market.

Johnson & Johnson

Healthcare product titan Johnson & Johnson (NYSE:JNJ) made news in mid-July by hiking its estimated 2025 earnings, pegging earnings at $10.80 per share, up 15 cents from its last estimate. JNJ also reported $93.6 billion in sales, a $2 billion increase from the previous year. The company’s share price rose 6.2% on the news and is up 11.4% in the past 30 days.

Wall Street insiders view JNJ as a momentum stock right now, and popping the stock on your watchlist might be a good idea. For starters, Johnson & Johnson embodies a diverse company, with 275 subsidiaries all tied to the pharmaceutical and medical supplies business, and 26 of those subsidiaries boast sales of $1 billion or more. Spreading the wealth enables JNJ to fortify itself against chaotic markets and volatile economies, which investors have seen plenty of in 2025.

The stock also boasts a substantial 3.4% dividend yield and has experienced six decades of consecutive dividend hikes. JNJ has the backing of key Wall Street analysts, who have a consensus “strong buy” rating on the stock, with a $175 price target. JNJ is currently selling at $169 per share with plenty of runway for more growth.

On the tariff front, JNJ sees the issue abating, reducing its estimated $400 million tariff losses in half, to $200 million, primarily due to a calmer China tariff environment in mid-2025. Stronger sales in the company’s MedTech division have also calmed any adverse trade policy conditions.

Novartis

Novartis (NYSE:NVS) shares are meandering in mid-2025, with the stock down 2.28% for the past month but up 5.6% over the past 90 days. The Basel, Switzerland biopharma giant was exposed to Team Trump’s tariff threats, which had the US placing 30% tariffs on European imports. The discussion now centers on a 10%-to-15% tariff on the EU, which appears to be a level that should satisfy both sides of the geopolitical spectrum.

Shareholders should also approve of a newly announced $10 billion share buyback from Novartis management and will appreciate news of an upgraded earnings assessment for 2025. In its latest quarter, NVS recorded a net profit of $4.0 billion compared with $3.25 billion in the prior year period. Operating profits totaled $5.925 billion, a 21% increase from the same period last year.

Toss into the mix a tidy 2.88% dividend yield, and NVS shares become even more appealing, with the tariff issue fading away for now.

IMagev Via: Aria Armoko via Shutterstock