3 Stocks With the Most to Gain From Tariff Relief

Core Insights - The Supreme Court's ruling against President Trump's use of the IEEPA to impose tariffs has created opportunities for several companies, particularly in the retail sector, as it provides relief from high import costs and potential refunds [4][5][6]. Tariff Changes and Implications - The IEEPA tariffs collected an estimated $175 billion, and companies can seek refunds by filing suits in the Court of International Trade, which could significantly benefit corporations that had anticipated higher import costs in their projections [1]. - New tariffs under Section 122 are limited to a maximum rate of 15% and cannot be tailored to specific countries, making them less flexible than previous tariffs [2]. - The effective tariff rate has decreased from 9.8% to 9.1%, providing some relief to companies facing tariffs, although the market's reaction was muted [3]. Company-Specific Impacts - Five Below: The company has faced margin pressure due to tariffs on its imported products from China. The removal of the harshest tariffs provides immediate relief, and analysts have raised their price target to $259, indicating a potential upside of nearly 15% [8][11]. - Ross Stores: While Ross does not import directly, it benefits from purchasing overstocked inventory from U.S. brands that have already paid tariffs. The removal of tariffs could allow Ross to acquire inventory at deeper discounts [12][13]. - FedEx: The company estimates that tariffs caused a $1 billion revenue headwind in fiscal 2025. With the removal of IEEPA tariffs, FedEx can resume normal operations on its key trade route from China to the U.S. Additionally, it has filed a suit for a refund that could yield up to $1 billion in tariff relief [15][16][17].