Well, that's one way to start a Friday rally. The U.S. Supreme Court just handed down a historic ruling that basically said, "Mr. President, you can't do that," and the stock market responded with a collective sigh of relief. The "that" in question? Former President Donald Trump's sweeping global tariffs, which the Court has now invalidated, ruling they weren't authorized by law.
The decision, issued Friday, held that the International Emergency Economic Powers Act (IEEPA) does not give the president the power to impose tariffs. In the majority opinion, Chief Justice John Roberts pointed to Article I of the Constitution, which grants Congress—and Congress alone—the power to levy duties and taxes. It's a foundational separation-of-powers thing. The president, the Court said, needs "clear congressional authorization" to take such sweeping economic action, and IEEPA's authority to "regulate … importation" doesn't cut it.
This all stemmed from national emergencies declared by President Trump tied to drug trafficking and what he called "large and persistent" trade deficits. Using that authority, he rolled out a 25% duty on most imports from Canada and Mexico and started with a 10% duty on most Chinese imports. That was just the opening act. The tariffs on Chinese goods were later increased to 20%, then additional "reciprocal" tariffs of at least 10% were layered on all trading partners. Things escalated quickly from there. Within weeks, rates on Chinese goods shot up to 34%, then 84%, and ultimately 125%. For many products, the effective tariff rate hit a staggering 145%.
The administration's defense was ambitious, to say the least. They argued the tariffs could reduce the federal deficit by a cool $4 trillion and support trade deals worth up to $15 trillion. The Court wasn't buying it. The majority noted that in IEEPA's nearly 50-year history, no president had ever used the law to impose tariffs. Until now, that is.
So, what happens when a major, market-distorting policy gets yanked away? A rally, apparently. Investors cheered the removal of duties that had reshaped trade flows and corporate bottom lines for nearly a year. According to market data, ten stocks with market capitalizations of at least $2 billion led the charge with some of the biggest gains following the ruling.
- RingCentral Inc. (RNG) rose 13.89% to $40.40
- Vicor Corp (VICR) gained 11.96% to $153.00
- Legence Holdings Inc. (LGNC) climbed 11.30% to $53.97
- SolarEdge Technologies Inc. (SEDG) advanced 9.58% to $38.86
- Applied Optoelectronics Inc (AAOI) jumped 9.20% to $50.30
- Fastly Inc. (FSLY) added 8.73% to $19.90
- GRAIL Inc. (GRAL) rose 8.46% to $53.56
- Copart Inc. (CPRT) gained 7.98% to $36.59
- McGraw Hill Inc. (MH) advanced 7.34% to $14.24
- TTM Technologies Inc. (TTMI) climbed 7.01% to $106.65
It's a diverse list—from cloud communications and semiconductors to online auctioneers and educational publishers—which tells you how broad-based the tariff pain (and now the relief) has been. The ruling doesn't just reverse a policy; it rewrites the rulebook on presidential trade power, at least for now. And for a day, the market seemed pretty happy with the new chapter.
