Trump's Tariffs Ruled Illegal: Which U.S. Stock Companies Will Benefit the Most?

Bloomberg News, February 21 (Editor: Bian Chun) — According to CCTV News, the U.S. Supreme Court announced its ruling on February 20, stating that the large-scale tariffs implemented by the Trump administration under the International Emergency Economic Powers Act (IEEPA) lack clear legal authorization.

Wall Street is assessing the impact of the Supreme Court’s decision, while investors are also looking for stocks that are most likely to benefit from this milestone reversal in trade policy.

Jefferies, a well-known Wall Street investment bank, named five stocks, indicating that these stocks have the “greatest upside potential” due to the Supreme Court’s ruling.

“The removal of IEEP tariffs has brought significant profit margin tailwinds to the non-essential consumer goods sector we cover,” analysts wrote.

“Although the ruling abolishes the legal basis for these tariffs, many questions remain regarding related remedies—particularly whether companies are entitled to refunds for tariffs already paid,” they added.

Below are the five stocks Jefferies believes are most likely to rise after the Supreme Court’s tariff ruling.

Signet Jewelers

Jefferies analysts stated that Signet Jewelers is the main beneficiary of this tariff ruling.

About half of the company’s inventory comes from India, which is a key hub for natural diamonds and lab-grown diamonds globally.

Jefferies analysts wrote that with the Supreme Court’s decision, Signet Jewelers’ weighted average tariff exposure will drop from 15.1% to 0%, creating opportunities for profit margin improvement and earnings growth.

Yeti

Before the Supreme Court’s ruling, Yeti, a high-end outdoor gear company in the U.S., had nearly 15% of its business exposure related to tariffs, mainly concentrated in its U.S. revenue.

The company previously told investors that the IEEPA-related tariffs impacted its earnings per share by $0.35, meaning the ruling will eliminate future tariff pressures.

SharkNinja

U.S. high-end small appliance company SharkNinja had already actively mitigated the impact of tariffs through supply chain diversification, strategic pricing, and promotional activities.

Even with these measures, the company still faced profit margin headwinds related to tariffs.

The Supreme Court’s decision will turn this pressure into an advantage for the company, as operational adjustments that have already been made, combined with the tariff removal, will further boost earnings.

Nike

Nike included a 7.7% tariff exposure in its fiscal 2026 guidance. For this athletic apparel company, that amounts to $1.5 billion in costs.

“With the removal of IEEP tariffs, this situation has now reversed into a profit margin tailwind, supporting additional gross margin expansion in fiscal 2026,” wrote Jefferies analysts.

Birkenstock

The globally renowned footwear brand Birkenstock incorporated nearly 7% of weighted average tariff impact in its earnings guidance.

Jefferies stated that the Supreme Court’s ruling will turn profit margin headwinds into tailwinds, driving the company’s performance beyond its own expectations.