E-commerce Stocks Surge as Supreme Court Overturns Trump's Tariffs

• Amazon rose over 1% while Etsy jumped 5%, with Shopify, eBay, and Wayfair each climbing more than 3% following the ruling
• Trump's removal of the de minimis exemption had particularly impacted small businesses on platforms like Etsy and forced Temu and Shein to restructure their direct-from-China shipping models
• Amazon has paid approximately $3.3 billion in tariffs so far, and companies may now seek refunds on previously paid tariff costs

Summary: E-Commerce Stocks Rally on Supreme Court Tariff Ruling

Key Development:

The Supreme Court struck down President Trump's sweeping global tariffs in a 6-3 ruling, determining he lacked legal authority to impose them under the International Economic Powers Act (IEEPA). The decision eliminated a major economic policy pillar and provided immediate relief to e-commerce companies.

Market Impact:

• Amazon: +1%
• Etsy: +5%
• Shopify, eBay, Wayfair: +3%
• PDD Holdings (Temu parent): +3%

Business Implications:

E-commerce platforms had faced significant operational strain from the tariffs, forcing companies to raise prices, lay off staff, and restructure supply chains. Amazon CEO noted tariffs had begun to "creep" into pricing, with consumers trading down to lower-priced items and showing hesitation on discretionary purchases.

The ruling particularly impacts ultra-discount retailers Temu and Shein, which had relied on the de minimis exemption (removed by Trump via IEEPA) allowing low-value packages to enter the U.S. duty-free. Both companies had already begun establishing warehousing and logistics operations domestically in response.

Financial Data:

One company reported paying approximately $3.3 billion in tariffs. Etsy cited pressured business conditions in its recent earnings, warning of "considerable uncertainty" regarding the tariff landscape and its impact on discretionary spending.

Industry Response:

The National Retail Federation praised the decision for providing "much-needed certainty" and enabling global supply chains to operate without ambiguity. Companies may now seek refunds on tariff costs paid, with some having filed claims preemptively.

The ruling addresses broader concerns about weakened consumer sentiment amid tariff policy volatility and deteriorating economic conditions.