Eli Lilly Stock Drops As Trump Tariff Chaos Hits Markets, But Retail Finds Comfort In Big Pharma’s Exemption

Shares of Eli Lilly & Co, the biggest Big Pharma stock by market capitalization, were not immune to Thursday’s rout caused by fears of a global economic fallout from President Donald Trump’s reciprocal tariff blitz.

However, retail investors took heart in the fact that the pharmaceutical industry suffered a relatively lighter blow compared to sectors like technology and manufacturing, as it was largely spared from the government’s targeted tariff list.

On Stocktwits, message volume about Lilly jumped by 23% over the past 24 hours, with retail sentiment turning more ‘bullish.’

“LLY isn’t even affected. Loading up on calls at the open!” one user posted early Thursday when the stock was still in the green.

Another user pointed out that Trump had specifically highlighted Lilly as a company investing in U.S. infrastructure and job creation, suggesting it could ultimately benefit from the administration’s policies.

Back in February, when Trump threatened to impose tariffs on drug imports, Lilly unveiled a plan to invest $27 billion on new plants in the United States over the next five years.

However, as drugmakers dig through the fine print of Trump's sweeping executive order — which imposes a 10% baseline duty on most imports — uncertainty remains over whether the pharmaceutical industry will be completely spared.

Media reports suggest a U.S. official hinted that a separate round of tariffs targeting pharmaceuticals is still on the table.

According to Bernstein analysts, if country-specific tariffs are applied, the pharmaceutical industry could face up to $46 billion in additional import costs.

For now, investors seem to be taking a small win in stride.

Retail traders on Thursday also zeroed in on Lilly’s newly inked licensing deal with Sangamo Therapeutics for its adeno-associated virus capsid, STAC-BBB, designed to improve the delivery of IV-administered genomic medicines for neurological diseases.

The deal grants Lilly exclusive global rights to use STAC-BBB for one initial central nervous system target, with the option to expand to four more for additional fees.

Lilly's stock has gained a little over 1% this year, while the Dow Jones U.S. Health Care Index is up over 2.5% and the S&P 500 Health Care Index has risen over 4%.

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