The recent ruling by the U.S. Supreme Court has prompted a surge in shares of major online retailers. Following the Court's decision to invalidate the broad tariffs that were previously enforced by the Trump administration, stocks of companies like Amazon and Etsy experienced notable gains. This development marks a significant change in the economic landscape, particularly for e-commerce.
How does this ruling affect major online retailers? The ruling stemmed from a 6 to 3 decision that found President Trump did not have the authority to impose tariffs under the International Emergency Economic Powers Act. The Court emphasized that actions influencing the economy heavily require explicit congressional approval.
This landmark decision annulled a 10% tariff that was enacted in April 2025 on imports from numerous trading partners, which resulted in approximately $142 billion being collected within that timeframe. Those figures indicate substantial financial implications moving forward, as businesses may now file refund claims for the collected tariffs.
Additionally, the ruling has implications for Trump’s modifications to the de minimis exemption. This exemption had allowed low-value goods to enter the country without incurring any duties, benefiting sellers on platforms like Etsy and Temu substantially.
Retail industry representatives have applauded the decision, recognizing it as a means to restore stability within supply chains. Furthermore, it alleviates the price pressure on consumers that Amazon CEO Andy Jassy had noted was beginning to emerge due to the earlier tariff costs.
In a response to the Court’s ruling, Donald Trump indicated plans to identify new legal avenues to reinstate a 10% global tariff. During his comments, he alluded to the potential use of the Trade Act of 1974, which provides the president with the authority to impose temporary import restrictions. This strategy could offer an alternative approach while the administration seeks options to replace the prior duties rendered ineffective by the Court’s decision.