On Feb. 20, the Supreme Court ruled Trump lacked authority to impose tariffs under the IEEPA, nullifying previous tariffs and boosting retail stocks like Amazon and PDD. Amazon relies on Chinese sellers, and PDD facilitates Chinese merchants to sell internationally, benefiting from the tariff removal.

While Amazon and PDD saw gains post the Supreme Court ruling, sustainability remains uncertain. The elimination of tariffs will benefit overseas sellers, but challenges like the absence of the de minimis rule and new global tariffs under Section 122 of the Trade Act of 1974 could impact gains.

Investors shouldn’t expect significant short-term gains post the Supreme Court ruling affecting Amazon and PDD. Cross-border merchants may face lower tariffs, but hurdles like the absence of the de minimis rule and new global tariffs could affect profits in the near term. Consider other investment options highlighted by the Motley Fool Stock Advisor team.

Read more at Nasdaq: These 2 Retail Stocks Are Soaring After SCOTUS Strikes Down President Trump’s Tariffs