Trump Trade: White House releases details on ‘Great Healthcare Plan’

Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Donald Trump with this daily recap compiled by The Fly.

GREAT HEALTHCARE PLAN: The White House stated, “President Donald J. Trump’s Great Healthcare Plan is a broad healthcare initiative that will slash prescription drug prices, reduce insurance premiums, hold big insurance companies accountable, and maximize price transparency in the American healthcare system. This plan will deliver money directly to the American people, not insurance companies, big pharma and special interest groups-putting patients over industry leaders’ profits, just as he promised. The Great Healthcare Plan also builds on the successes of his first term by promoting competition, eliminating wasteful spending, and putting consumers back in control.” Publicly traded health insurance companies include CVS Health (CVS), Centene (CNC), Cigna (CI), Elevance Health (ELV), Humana (HUM), Molina Healthcare (MOH) and UnitedHealth (UNH). Publicly traded drugmakers include AstraZeneca (AZN), Bristol Myers (BMY), Eli Lilly (LLY), GSK (GSK), Johnson & Johnson (JNJ), Merck (MRK), Novartis (NVS), Pfizer (PFE), Roche (RHHBY) and Sanofi (SNY).

Wells Fargo says the “The Great Healthcare Plan” released by the White House, which calls on Congress to implement reforms affecting premiums, pharmacy benefit managers, and drug pricing, will likely face a difficult path forward. In addition, lack of “new onerous proposals could be viewed as positive” for the healthcare services group, the analyst tells investors in a research note.

Cantor Fitzgerald says the Trump administration’s “Great Healthcare Plan” proposal is a favorable outcome for the medical insurers. The proposed mandates for insurers “are nothing new or disruptive,” the firm tells investors in a research note. Cantor believes the bill’s Implications are more around rebranding than a structural change in business operations. In enacted, the “Great Healthcare Plan” will clear a “major policy overhang” for the group. It sees the bill as a net positive for UnitedHealth, Elevance Health, Cigna, Humana, CVS Health, Centene and Molina Healthcare. However, the plan does present some risk for the heavily marketplace exposed names like Cigna and Molina as the Congressional Budget Office forecasts a drop in the 200%-400% federal poverty level marketplace enrollees, Cantor adds. The firm believes it is “far too late” into Trump’s second term for a meaningful healthcare policy overhaul.

TARIFFS ON TAIWAN: The American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States signed a trade deal that will “drive a reshoring of America’s semiconductor sector,” the Commerce Department announced. “This unprecedented commitment will strengthen U.S. economic resilience, create high-paying jobs, and bolster national security. The agreement establishes a strategic economic partnership between the United States and Taiwan to decisively strengthen U.S. domestic semiconductor supply chains and secure America’s technological and industrial leadership. Taiwanese semiconductor and technology enterprises will make new, direct investments totaling at least $250 billion to build and expand advanced semiconductor, energy, and artificial intelligence production and innovation capacity in the United States. Taiwan will provide credit guarantees of at least $250 billion to facilitate additional investment by Taiwanese enterprises, supporting the establishment and expansion of the full semiconductor supply chain and ecosystem in the United States… The agreement will enhance balanced trade through a predictable tariff framework. The U.S. reciprocal tariff rate applied to Taiwanese goods will total no more than 15 percent. The U.S. Section 232 duties applied to Taiwanese auto parts, timber, lumber, and wood derivative products will total no more than 15 percent. The United States will apply a zero percent reciprocal tariff for generic pharmaceuticals, their generic ingredients, aircraft components, and unavailable natural resources. Future Section 232 duties applied to Taiwanese semiconductors will reward Taiwanese semiconductor producers that invest in the United States,” Commerce stated.

EU FINES: In a post to Truth Social, President Donald Trump stated, “This is very unfair for our Tech Companies, and for the United States of America!,” along with a graphic that states “EU makes more from fines on US tech, than tax from ALL of public European tech.”

FANNIE, FREDDIE: Federal Housing Finance Agency Director Bill Pulte stated in a post to X that, “Thanks to President Trump’s decision to not sell these companies for $100 billion in his first term, Fannie and Freddie are getting stronger every day with Common Sense upgrades to safety and soundness, like the below!” The post included a link to news that Freddie Mac (FMCC) is revising its liquidity verification documentation requirements to include a liquidity verification worksheet with delivery of the full underwriting package.

TRUMP CARD: Jefferies notes that both Bloomberg and Reuters reported that President Trump and Northeast Governors are advocating for emergency PJM Interconnection backstop capacity auction to address electricity affordability and reliability. The firm tells investors that this is not a surprise but a clear negative shock to power investors from our conversations. Jefferies recommends buying GE Vernova (GEV) as clearest winner. It also sees this as positive for NGR Energy (NRG), PPL Corp. (PPL), NextEra Energy (NEE), Primoris (PRIM), Quanta Services (PWR), and Williams Companies (WMB), and a net risk to incumbent power Constellation Energy (CEG), Talen Energy (TLN), and Vistra Corp. (VST) on new supply. Overall, Jefferies says “increasing market intervention disfavoring contracting existing.”