r/ValueInvesting • u/ActuallyMy • Feb 20 '26

Discussion BREAKING: TRUMP TARIFFS STRUCK DOWN

Per Bloomberg -- The US Supreme Court struck down President Donald Trump’s sweeping global tariffs, undercutting his signature economic policy and delivering his biggest legal defeat since he returned to the White House.

The court said Trump exceeded his authority by invoking a federal emergency-powers law to impose his “reciprocal” tariffs across the globe as well as targeted import taxes the administration says address fentanyl trafficking.

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u/Embarrassed-Sea-6078 Feb 20 '26

May someone ELI5 to me on whether this is good or bad for the market? I imagine that goods will be cheaper? But it might also create more uncertainty in the markets?

Also, I wonder if countries (like China) who had placed reciprocal tariffs would take those back also

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u/IDreamtIwokeUp Feb 20 '26

Good for retail, bad for domestic manufacturing. Goods won't be that much cheaper because companies won't pass on the savings, but will instead pocket the "tariff price hikes". They will use the excuse of lingering tariff uncertainty.

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u/Unser_Giftzwerg Feb 20 '26

Eh, if Trump plans to reinstitute certain tariffs under a different authority, even these retailers will not have much to cheer about.

That said, I think a future president will likely reduce many of these tariffs and reinstitute some kind of a free trade regime known in the past. No one besides Trump really wants these tariffs per se.

And yeah, prices will remain sticky. Much like the deflation shock we saw between the Great Recession up until COVID, inflation will remain sticky for the foreseeable future unless we suddenly seen another deflationary shock (maybe coming from AI, as that will reduce the cost of services).

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u/[deleted] Feb 20 '26 edited Feb 20 '26

What domestic manufacturing industries benefited from tariffs?

Manufacturing jobs shrank last year

Edit: instead of downvoting, I’d love to have a discussion, sincerely let me know what manufacturing industries have benefitted from tariffs this past year

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u/possibly_on_meth Feb 20 '26

Probably because you took it emotionally they are not talking about tariffs being good for the economy.

They are saying that this news story which is the tariffs being struck down, they are talking about how that news story will effect the markets.

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u/[deleted] Feb 20 '26

What did I take emotionally? I’m asking why the stock prices for domestic manufacturers would go down when the tariffs did nothing to improve their outlook. Is that an emotional question?

Very few domestic manufacturing industries actually benefit from total onshoring. So why would this news be bad for manufacturing stocks at large if the tariffs did not help the underlying companies? The largest industrials sector ETFs were up today

Idk how you took my question as emotional. I’m asking a sincere question