Retailers could win big on a repeal of Trump’s tariffs. Here’s why the stocks aren’t rising.
MarketWatch
by Bill PetersFebruary 20, 2026
AI-Generated Deep Dive Summary
Retailers like Target, Nike, and Hasbro are poised to benefit significantly if the Supreme Court’s ruling on U.S. emergency-powers tariffs leads to lower costs. However, despite this potential upside, shares of major retail giants such as Walmart and Costco have declined, reflecting broader market uncertainty and investor caution. The ruling, which struck down Trump-era tariffs, could reduce import expenses for companies reliant on global supply chains, but the response from President Trump and ongoing legal challenges remain key factors influencing stock performance.
Analysts highlight that Target, Nike, and Hasbro are particularly well-positioned to gain due to their reliance on imported goods. For instance, Nike sources materials globally, while Hasbro imports toys and games, making both companies sensitive to tariff changes. Similarly, Target’s extensive supply chain could see cost reductions, potentially boosting margins and profitability. These benefits could trickle down to consumers through lower prices or improved product offerings.
However, the immediate market reaction has been mixed. While some stocks initially rose on news of the ruling, concerns over Trump’s potential resistance and the unpredictability of his response have tempered gains. Retailers like Walmart and Costco, which were expected to benefit, saw their shares fall as investors weighed the broader implications of the ruling. This reflects a cautious market sentiment, with stakeholders waiting for clarity on how the administration will respond to the Supreme Court’s decision.
The broader financial implications are significant. Lower tariffs could reduce costs for U.S. importers and consumers, potentially stabilizing prices in inflationary environments. However, the legal battles over the ruling
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Originally published on MarketWatch on 2/20/2026