These 2 Retail Stocks Are Soaring After SCOTUS Strikes Down President Trump's Tariffs

By Leo Sun – Feb 23, 2026 at 3:29PM ESTKey PointsAmazon and PDD both connect overseas merchants to American customers.The SCOTUS ruling might help both companies, but some significant hurdles remain.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: AMZNAmazonMarket Cap$2.3TToday's Changeangle-down(-2.39%) $5.02Current Price$205.09Price as of February 23, 2026 at 3:58 PM ETAmazon and PDD could benefit from the Supreme Court's ruling.On Feb. 20, the Supreme Court ruled that President Trump lacked the legal authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA). That ruling, which nullifies most of the Trump Administration's previous tariffs, lit a fire under many retail stocks. Two such stocks were Amazon (AMZN 2.39%) and PDD (PDD +0.78%), which rose 3% and 4%, respectively, after the Supreme Court's ruling. Let's see if those gains are sustainable. Image source: Getty Images. Why did Amazon and PDD rally? Amazon, the world's largest e-commerce company, generated 24% of its net sales from its third-party seller services in 2025. Many of those third-party sellers are based in China. PDD, the third-largest e-commerce company in China, allows its Chinese merchants to sell their products internationally (especially in America) via its cross-border marketplace Temu. Therefore, the elimination of the Trump Administration's tariffs on China under IEEPA -- including its "emergency" 10%-20% tariffs and baseline reciprocal tariffs -- will enable Chinese sellers on Amazon and Temu to cut prices and attract new shoppers again. ExpandNASDAQ: AMZNAmazonToday's Change(-2.39%) $-5.02Current Price$205.09Key Data PointsMarket Cap$2.3TDay's Range$203.11 - $208.3952wk Range$161.38 - $258.60Volume3MAvg Vol47MGross Margin50.29% But are those gains sustainable? That seems like a green flag for Amazon and Temu, but they're not out of the woods yet.

The Supreme Court ruling doesn't reinstate the "de minimis" rule, which previously exempted overseas shipments valued at less than $800 from tariffs. Amazon and Temu both profited from that rule, which facilitated low-cost cross-border sales from China to the U.S.

The Trump Administration eliminated the de minimis rule last August -- forcing customers to pay tariffs on each product entering the U.S., regardless of its monetary value. Those higher costs and extended shipping times made it less appealing to buy products from China. Another issue is the Trump Administration's implementation of a new "global" 15% tariff under Section 122 of the Trade Act of 1974 in response to the Supreme Court's ruling. Those tariffs can last up to 150 days, after which Congress would need to approve any extension. That new tariff offsets the potential gains for Amazon and Temu's cross-border sellers. Investors shouldn't expect significant near-term gains Amazon, PDD, and other retail stocks rallied in a knee-jerk response to the Supreme Court's ruling, but not much has changed. Overseas cross-border merchants might pay slightly lower tariffs (based on the product and country of origin). However, the de minimis rule remains shelved, and they'll still need to navigate the Trump Administration's latest "global" tariffs.Read NextFeb 23, 2026 •By Daniel SparksAs Stocks Slide, Here's 1 to Consider BuyingFeb 22, 2026 •By Jennifer SaibilCould Amazon Stock Gain 79% This Year? 1 Wall Street Analyst Thinks So.Feb 22, 2026 •By James Brumley3 Stocks to Buy and Hold Forever: A Long-Term Play for Your PortfolioFeb 22, 2026 •By Adam LevyWalmart vs. Amazon: Which Trillion-Dollar Stock Is a Better Buy Right Now?Feb 21, 2026 •By Chris NeigerBetter Stock to Buy Right Now: Amazon vs. Home DepotFeb 21, 2026 •By Geoffrey Seiler2 Growth Stocks to Hold for the Next DecadeAbout the AuthorLeo Sun is a contributing Motley Fool stock market analyst who has worked with the company since 2013, covering technology, consumer goods, industrial, and financial sectors. He became a self-made millionaire by age 40 through long-term investing, crediting lessons from Warren Buffett and Peter Lynch. Leo is a regular guest on CNBC Asia providing stock analysis on Chinese technology companies, including Tencent, Baidu, and Alibaba. He previously wrote for InvestorGuide and holds a bachelor’s degree in English from the University of Texas at Austin.TMFSunLionX@TMFSunLionStocks MentionedAmazonNASDAQ: AMZN$205.27 (2.30%) $4.84PDD HoldingsNASDAQ: PDD$105.76 (+0.78%) $+0.82*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.