Will Trump Tariffs Make or Break Healthcare Space? 3 Stocks to Rely On

The American trade structure is witnessing a transformative shift, thanks to the Trump administration’s sweeping new tariff policy. Within the healthcare industry, the impact seems to be complex and widespread.

Apparently, pharmaceuticals are exempt from the steep reciprocal tariffs. However, the broader healthcare ecosystem—from hospitals to MedTech companies—is left exposed to the hefty tariffs, which may lead to significant retaliation from global trade partners and major supply chain disruption.

In this uncertain environment, investors looking to maintain exposure to healthcare may find greater stability in fundamentally strong large-cap U.S.-based stocks. Companies such as Universal Health Services UHS, BioMarin Pharmaceutical BMRN and Abbott Laboratories ABT stand out as resilient options in the face of escalating trade tensions.

Pharma Gets a Pass But Healthcare Supply Chains Brace for Impact

Pharmaceuticals have explicitly escaped from the heightened reciprocal tariffs, a notable win for drugmakers who lobbied intensely for the exemption. This move spares over $200 billion in annual U.S. pharmaceutical imports from immediate cost increases. However, the industry remains wary, considering Trump’s prior comments floating a “25% or higher” tariff on foreign-made drugs. That proposal, if reintroduced, could trigger pricing pressure and result in renewed challenges. A recent JAMA (The Journal of the American Medical Association) study showed that just a 25% tariff on Canadian drug imports alone could generate a $750 million increase in U.S. costs.

At the same time, medical devices and healthcare supplies appear to be bearing the brunt of the tariff fallout. According to a MedTech Dive report, AdvaMed — one of the medical device industry’s largest trade associations—reaffirmed its strong opposition to broad-based tariffs following the Trump administration’s announcement of new duties targeting most U.S. trading partners. The group warned that such measures would delay innovation, lead to job losses and drive up healthcare costs. Meanwhile, providers have been preparing for the financial strain, as the American Hospital Association and the Healthcare Distribution Alliance were unsuccessful in securing exemptions for essential medical supplies despite months of lobbying.

Economic Headwinds, Geopolitical Fallout

Beyond direct costs, the new tariffs introduce macroeconomic volatility. Goldman Sachs increased the odds of a U.S. recession from 20% to 35% last week and now again to 45%, citing trade-related uncertainty. Meanwhile, retaliation from affected trade partners, particularly the EU and China, could further squeeze access to vital materials and technologies.

3 Resilient Healthcare Stocks

In such a volatile environment, investors are advised to focus on large-cap (more than $10 billion of market capitalization) and fundamentally strong growth stocks within the healthcare sector. These companies are typically better positioned to absorb market shocks, maintain profitability and navigate through geopolitical and trade-related uncertainties.

Our first pick is Universal Health Services. The company’s Acute Care and Behavioral Health units have been pivotal in driving top-line growth, fueled by expansions in licensed bed capacity. We expect net revenues to grow 7.6% year over year in 2025. Universal Health Services anticipates positive impacts on its Acute Care unit from Medicaid supplemental programs. Strategic buyouts have played a significant role in augmenting its growth trajectory by broadening its portfolio of facilities.

UHS sports a Zacks Rank #1 (Strong Buy) at present and has a Growth Score of A. Moreover, the Zacks Consensus Estimate for 2025 earnings and revenues indicates 14% and 8% growth, respectively. Universal Health Services, with a market cap of $11.26 billion, has a long-term expected growth rate of 16.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Universal Health Services, Inc. Price and Consensus

Universal Health Services, Inc. price-consensus-chart | Universal Health Services, Inc. Quote

The second on the list is BioMarin Pharmaceutical. This company is gaining from strong demand in key drugs, especially dwarfism drug, Voxzogo. The recent label expansion of Voxzogo in the United States and Europe for use in infants with achondroplasia will likely boost sales further.

BioMarin Pharmaceutical is one of the few companies that has shown encouraging progress in the gene therapy space and commercially markets a gene therapy treatment. Roctavian is the first and only one-shot gene therapy approved for treating adults with severe hemophilia A in the United States and Europe.

This $10.66 billion market cap company too is a stable bet with a Zacks Rank #2 (Buy) and a Growth Score of B. Moreover, the Zacks Consensus Estimate for 2025 earnings and revenues suggests 22.2% and 9.8% growth, respectively. BioMarin Pharmaceutical has a long-term expected growth rate of 16.9%.

BioMarin Pharmaceutical Inc. Price and Consensus

BioMarin Pharmaceutical Inc. price-consensus-chart | BioMarin Pharmaceutical Inc. Quote

Last but not the least is Abbott. The company’s pipeline is unlocking new growth opportunities, supporting its strong growth outlook for 2025. Freestyle Libre, Lingo and Libre Rio CGM devices are on a great trajectory. Alinity, the company’s next-generation suite of systems, is a key driver in the core lab diagnostics business. Abbott is optimistic about its latest progress with biosimilars and expects this to significantly boost EPD sales in 2025.

This $214.9 billion-market cap company carries a Zacks Rank #2 at present. The Zacks Consensus Estimate for 2025 earnings and revenues implies 10.3% and 5.9% growth, respectively. Abbott has a long-term expected growth rate of 10.4%.

Abbott Laboratories Price and Consensus

Abbott Laboratories price-consensus-chart | Abbott Laboratories Quote

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This article originally published on Zacks Investment Research (zacks.com).

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