Shares of global drugmakers and MedTech companies bounced back on Wednesday after U.S. President Donald Trump issued a 90-day pause on reciprocal tariffs for all countries except China, ending a key overhang for the healthcare sector.

While Pharma was immune from Trump’s sweeping tariff measures, which included MedTech last week, Wall Street was bracing for imminent impact given his repeated threats to subject pharmaceuticals to higher duties in an attempt to boost domestic production.

Global pharma stocks came under renewed selling pressure in the morning hours Wednesday after Trump threatened to impose a "major" tariff on all pharmaceutical imports “very shortly.”  “We’re going to tariff our pharmaceuticals, and once we do that, they are going to come rushing back into our country, because we’re the big market," he said at a dinner in Washington, D.C., on Tuesday.

With his tariff measures on hold for now, major drugmakers reversed early losses.

Notable outperformers include Viatris  (VTRS), Bausch Health (BHC), Teva Pharmaceutical (TEVA), Novo Nordisk (NVO), Gilead (GILD), Amgen (AMGN), Pfizer (PFE), Eli Lilly (LLY), Merck (MRK) and Vertex Pharma (VRTS). Veterinary drugmakers Elanco Animal Health (ELAN), and Zoetis (ZTS) were also among notable gainers.

VanEck Vectors Pharmaceutical ETF (NASDAQ:PPH), which represents 25 global pharma stocks, and SPDR S&P Pharmaceuticals ETF (NYSEARCA:XPH) ended a four-day selloff, as did Health Care SPDR ETF (NYSEARCA:XLV).

Meanwhile, iShares U.S. Medical Devices ETF (NYSEARCA:IHI) climbed ~5%, marking its best one-day since November 2022.

Notable gainers in the MedTech: Intuitive Surgical (ISRG), DexCom (DXCM), Baxter International (BAX), ResMed (RMD), Teleflex (TFX), Stryker (SYK), Boston Scientific (BSX), Edwards Lifesciences (EW), TransMedics (TMDX), Becton, Dickinson (BDX), Medtronic (MDT), Glaukos (GKOS).