We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Stocks to Watch as the Supreme Court Rescinds President Trump's Tariffs
Making financial headlines on Friday, the Supreme Court ruled 6–3 that President Trump exceeded his legal authority when he imposed sweeping global tariffs using the International Emergency Economic Powers Act (IEEPA) — a 1977 law intended for genuine national-security emergencies, not broad economic policy.
While markets will ultimately interpret the ruling over time, some of the potential positive effects include lower input costs for U.S. companies and, eventually, reduced trade uncertainty.
Of course, the potential negative or mixed effects may be short-term stock market volatility and sector-specific pressure on companies that benefited from tariff protection, such as certain steel or aluminum producers that could see downward pressure as foreign competition becomes cheaper.
Notably, the Supreme Court’s decision invalidates the tariffs imposed under IEEPA but does not resolve whether importers will receive refunds, a sum estimated at over $200 billion.
That said, here are a few stocks to watch on the positive beneficiary side of things that may be entitled to these rebates or will at least have better operating visibility going forward.
Apple & Amazon
Outside of semiconductors, which were mostly immune to higher tariffs, some notable tech stocks could benefit from the Supreme Court’s ruling, especially Apple (AAPL - Free Report) and Amazon (AMZN - Free Report) .
To reduce exposure to higher U.S. tariffs on China, Apple has undergone costly operational shifts to move some of its production to India and Vietnam, and has still paid an estimated $3 billion in tariffs under Trump’s trade policies.
Furthermore, the “de minimis exemption” is expected to go back in to affect, which allows low-value imports under $800 to enter the U.S. duty-free and would directly benefit Amazon’s e-commerce operations.
Automakers
There is a caveat here, as General Motors (GM - Free Report) has clearly faced more tariff costs than Ford (F - Free Report) .
GM has faced a multi-billion-dollar per year tariff burden under Trump’s policies for a total sum that’s estimated at $6.1-$7.1 billion.
On the other hand, other domestic automakers, including Ford, have reportedly thanked Trump for foreign tariffs on medium-and heavy-duty trucks, which they believed benefited U.S. automakers.
Apparel Retailers
Apparel retailers such as Nike (NKE - Free Report) and Lululemon (LULU - Free Report) were pushed to shift or reconsider parts of their foreign production due to Trump-era tariffs and have also dealt with a significant supply-chain disruption because of such.
The reinstated "de minimis exemption” should help here as well, and as potential buy-the-dip targets, Nike stock is down 40% in the last two years, with Lululemon shares plunging nearly 60%.
Image Source: Zacks Investment Research
Home Builders
Lower mortgage rates usually come to investors' minds first regarding a catalyst that can propel homebuilders, but higher material costs have weighed down their potential.
Lower import costs on certain essential construction materials could be very beneficial for homebuilder stocks like Toll Brothers (TOL - Free Report) and Lennar Corporation (LEN - Free Report) .
To that point, the Producer Price Index (PPI) for construction has been at an all-time high, which measures the average change in selling prices received by domestic producers for their construction output.
Image Source: Federal Reserve Economic Data
Bottom Line
Investors will certainly be monitoring the potential tariff relief impact on the global economy, and these stocks could be poised to benefit. On the flip side, many basic materials stocks have benefited from Trump's tariffs, like domestic steel and aluminum producers, and the president plans to seek other routes under the Trade Act to keep these policies in place, such as section 122.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Stocks to Watch as the Supreme Court Rescinds President Trump's Tariffs
Making financial headlines on Friday, the Supreme Court ruled 6–3 that President Trump exceeded his legal authority when he imposed sweeping global tariffs using the International Emergency Economic Powers Act (IEEPA) — a 1977 law intended for genuine national-security emergencies, not broad economic policy.
While markets will ultimately interpret the ruling over time, some of the potential positive effects include lower input costs for U.S. companies and, eventually, reduced trade uncertainty.
Of course, the potential negative or mixed effects may be short-term stock market volatility and sector-specific pressure on companies that benefited from tariff protection, such as certain steel or aluminum producers that could see downward pressure as foreign competition becomes cheaper.
Notably, the Supreme Court’s decision invalidates the tariffs imposed under IEEPA but does not resolve whether importers will receive refunds, a sum estimated at over $200 billion.
That said, here are a few stocks to watch on the positive beneficiary side of things that may be entitled to these rebates or will at least have better operating visibility going forward.
Apple & Amazon
Outside of semiconductors, which were mostly immune to higher tariffs, some notable tech stocks could benefit from the Supreme Court’s ruling, especially Apple (AAPL - Free Report) and Amazon (AMZN - Free Report) .
To reduce exposure to higher U.S. tariffs on China, Apple has undergone costly operational shifts to move some of its production to India and Vietnam, and has still paid an estimated $3 billion in tariffs under Trump’s trade policies.
Furthermore, the “de minimis exemption” is expected to go back in to affect, which allows low-value imports under $800 to enter the U.S. duty-free and would directly benefit Amazon’s e-commerce operations.
Automakers
There is a caveat here, as General Motors (GM - Free Report) has clearly faced more tariff costs than Ford (F - Free Report) .
GM has faced a multi-billion-dollar per year tariff burden under Trump’s policies for a total sum that’s estimated at $6.1-$7.1 billion.
On the other hand, other domestic automakers, including Ford, have reportedly thanked Trump for foreign tariffs on medium-and heavy-duty trucks, which they believed benefited U.S. automakers.
Apparel Retailers
Apparel retailers such as Nike (NKE - Free Report) and Lululemon (LULU - Free Report) were pushed to shift or reconsider parts of their foreign production due to Trump-era tariffs and have also dealt with a significant supply-chain disruption because of such.
The reinstated "de minimis exemption” should help here as well, and as potential buy-the-dip targets, Nike stock is down 40% in the last two years, with Lululemon shares plunging nearly 60%.
Image Source: Zacks Investment Research
Home Builders
Lower mortgage rates usually come to investors' minds first regarding a catalyst that can propel homebuilders, but higher material costs have weighed down their potential.
Lower import costs on certain essential construction materials could be very beneficial for homebuilder stocks like Toll Brothers (TOL - Free Report) and Lennar Corporation (LEN - Free Report) .
To that point, the Producer Price Index (PPI) for construction has been at an all-time high, which measures the average change in selling prices received by domestic producers for their construction output.
Image Source: Federal Reserve Economic Data
Bottom Line
Investors will certainly be monitoring the potential tariff relief impact on the global economy, and these stocks could be poised to benefit. On the flip side, many basic materials stocks have benefited from Trump's tariffs, like domestic steel and aluminum producers, and the president plans to seek other routes under the Trade Act to keep these policies in place, such as section 122.