E-commerce stocks that had been exposed to the effects of President Donald Trump’s sweeping global tariffs rallied on Friday after the Supreme Court struck down a key pillar of the president’s economic policy.
In a 6-3 decision, the court said President Trump did not have legal authority to impose the tariffs under the International Economic Powers Act, which was used to impose many of the levies. IEEPA does not explicitly mention tariffs.
decision has been submitted Amazon and wayfairinventory increases by 2%; Etsy It increased by 8%. shares of Shopify 1% increase, eBay It jumped 3%. Pinduoduo Holdingsthe parent company of ultra-low-cost online marketplace Tem, soared 2%.
President Trump’s sweeping tariffs have been a major disruption to e-commerce companies, which provide platforms for online companies to sell goods.
In some cases, tariffs have squeezed profits, forcing companies to lay off workers, raise prices and radically change supply chains.
President Trump also invoked the IEEPA law when he announced the repeal of the “de minimis” exemption that allows low-value packages to arrive in the United States without trade tariffs.
This was a blow to many small business owners on Etsy, eBay, and Shopify who relied on this provision to support their marketplace businesses.
It also threatened to break up Tem and Shein’s U.S. operations.
Off-price retailers used this loophole to ship packages duty-free directly from China to U.S. shoppers. In response, Tem temporarily suspended direct shipments from China. Since then, both companies have built larger sales offices and logistics operations in the United States.
The end of de minimis and other dramatic changes in tariff policy, coupled with a bleak economic backdrop, are also weighing on consumer sentiment.
Amazon CEO Andy Jassy said in an interview with CNBC last month that President Trump’s tariffs were starting to “creep” into the prices of some products.
The company has observed that some people discount or look for bargains on lower-priced items, while others balk at more expensive discretionary items.
Etsy said in its annual report Thursday that its business is being weighed down by lower discretionary spending and “evolving buyer behavior.”
The company said in its 10-K filing that there is “substantial uncertainty regarding the evolving tariff landscape, what will happen with recent microexemption changes, and the impact of increased tariffs on consumer demand and discretionary wallet share.”
The online marketplace, which is home to many small businesses and handicraft manufacturers, also gave a lukewarm outlook for total merchandise sales in the first quarter. CFO Lanny Baker said Etsy’s forecast assumes macroeconomic conditions remain “stable relative to current times.”
Representatives for Etsy and Amazon did not immediately respond to requests for comment on the SCOTUS ruling.
The National Retail Federation, a major industry group, said in a statement that the ruling “brings much-needed certainty to American businesses and manufacturers and allows global supply chains to operate without ambiguity.”
Companies could now seek to recover billions of dollars in tariff costs, and some have already filed lawsuits ahead of the court’s decision.
apple It has paid about $3.3 billion in tariffs so far.
