Supreme Court Overturns Trump IEEPA Tariffs; Jefferies Flags Five Winners

The U.S. Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) cannot serve as a legal basis for imposing tariffs, invalidating a key component of former President Trump's trade policy. Jefferies analysts identified Signet Jewelers (SIG), Yeti (YETI), SharkNinja (SN), Nike (NKE), and Birkenstock (BIRK) as the primary beneficiaries of this judicial reversal. The ruling removes significant margin headwinds for consumer discretionary firms. Signet Jewelers sees its weighted average tariff exposure drop from 15.1% to zero, while Yeti eliminates an estimated $0.35 drag on earnings per share. For Nike, the decision removes a projected $1.5 billion cost headwind embedded in its fiscal 2026 guidance, paving the way for gross margin expansion. Jefferies notes that the removal of these tariffs converts a major profit obstacle into a tailwind for the selected companies.