Major online retailers saw significant stock gains Friday following the U.S. Supreme Court's decision to strike down President Donald Trump's broad tariffs. The court ruled that the president exceeded his authority under the International Emergency Economic Powers Act (IEEPA) to impose such duties.
Amazon's stock climbed over 2%, Etsy surged nearly 10%, and Shopify advanced more than 2%. Other online marketplaces, including eBay, Wayfair, and Pinduoduo, also experienced positive movement.
The Supreme Court's 6-3 ruling stated that IEEPA does not grant the president the power to levy tariffs, emphasizing the need for clear congressional approval for actions with substantial economic impact. This decision effectively voids a 10% tariff implemented in April 2025 on imports from most trading partners. Approximately $142 billion collected under that tariff structure could now be subject to refund requests.
Furthermore, the ruling impacts the removal of the de minimis exemption, a policy that allowed low-value goods to enter the U.S. duty-free, a practice heavily utilized by sellers on platforms like Etsy and Temu.
Industry groups have indicated that the ruling brings much-needed certainty to supply chains. Previously, Amazon CEO Andy Jassy had highlighted concerns that tariff costs were beginning to affect consumer prices.
In response to the court's decision, former President Donald Trump announced his intention to pursue alternative legal avenues to impose a 10% global tariff. He indicated that the administration would utilize the Trade Act of 1974, which permits the president to enact temporary import restrictions, and suggested other measures would be employed to replace the duties invalidated by the Court.