Donald Trump unilaterally imposed sweeping tariffs, violating federal law – the U.S. Supreme Court ruled on Friday, February 20, 2026. The landmark decision has prompted reactions from investors in Europe and across the Atlantic. Shares of Amazon, a major importer of goods from China, are among those seeing gains.
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The S&P 500 index, which comprises 500 of the largest companies on the American stock exchange, rose 0.6 percent following the ruling. The Nasdaq index gained 1 percent. Both indexes had been down approximately 0.2 percent at the opening of trading.
Shares of Amazon – a company that, according to Wedbush Securities, sources up to 70 percent of its goods from China and has already begun to sense the impact of tariffs on some product prices – increased by 2 percent. Clothing manufacturers like Deckers Outdoors also saw increases, as did retailers such as Home Depot. Shares of industrial giant Caterpillar recovered earlier losses, rising nearly 1 percent.
See also: Are Trump’s Tariffs Illegal? The European Commission Responds to the Situation in the U.S.
European stock markets also showed gains, particularly among automotive companies. The Euro Stoxx 50 index closed up almost 1.2 percent.
While visible, the market’s reaction has not been particularly strong, as investors largely anticipated the Supreme Court’s decision. Analysts also expect the White House to reapply many of the same tariffs using alternative means. The Supreme Court ruled that the president did not have the authority to impose tariffs based on the IEEPA Act. This act, previously used primarily to implement sanctions, formed the legal basis for most of Trump’s tariffs.
See also: How the American Economy Has Performed After the First Year of Trump’s Presidency
On the Warsaw Stock Exchange, the WIG20 index and the broad market WIG index closed Friday’s session slightly lower, although they began to recover earlier losses towards the conclude of the day.
U.S. Supreme Court Ruling: “Relief from Uncertainty”
“This ruling has significant implications for the boundaries of presidential power in the U.S. And the separation of powers between the legislative and executive branches, but also as a macroeconomic catalyst for stocks, bonds, currencies, and global trade flows. The Supreme Court’s decision on Trump’s tariffs is an important macroeconomic event with multifaceted implications for many assets,” said Rob Burdett of Rob Nedgroup Investments in London, as quoted by Reuters.
“In the case of stocks, it is generally expected that the ruling against the tariffs will improve the performance of American and global stocks. Relief from trade uncertainty could be a positive factor for cyclical and import-dependent sectors, such as IT equipment (including semiconductors, although they are likely to be subject to sectoral tariffs), retail, and industry,” he added.
Source: Reuters, CNBC
