E-commerce stocks that were exposed to President Donald Trump's far-reaching global tariffs rallied Friday, after the Supreme Court struck down a key pillar of the president's economic agenda.
In a 6-3 ruling, the court said Trump does not have the legal authority to impose tariffs under the International Economic Powers Act, the method by which many of the levies were invoked. IEEPA does not explicitly mention tariffs.
The decision sent Amazon 's stock up more than 1%, while Etsy climbed 5%. Shares of Shopify , Wayfair and eBay popped more than 3%. Pinduoduo Holdings , the parent company of ultracheap online marketplace Temu, also jumped 3%.
Trump's sweeping tariffs have been greatly disruptive to e-commerce companies that provide a platform for online businesses to hawk their wares.
In some cases, the tariffs have eaten into margins and forced businesses to lay off staff, raise prices or radically alter their supply chains.
Trump also invoked the IEEPA law when he announced the removal of the "de minimis" exemption, which allowed low-value packages to arrive in the U.S. without trade duties.
That dealt a blow to many small business owners on Etsy, eBay and Shopify who relied on the provision to support their marketplace businesses.