Feb. 23 at 3:12 PM
Bank of America said the Supreme Court’s decision to strike down President Donald Trump’s IEEPA tariffs created a meaningful tailwind for parts of the small- and mid-cap e-commerce sector. While stocks initially jumped, gains faded after Trump announced a new global tariff under Section 122.
Analyst Michael McGovern noted the mixed policy backdrop will produce “winners and losers,” with Etsy seen as the biggest potential beneficiary. About half of its gross merchandise sales are domestic, with the rest diversified across imports, U.S. exports, and purely international transactions. No single import country accounts for more than 4% of sales, and key sourcing markets—such as the UK, Canada, Turkey, India, and Ukraine—represent only half of total import exposure, providing flexibility if tariffs rise.
Among peers, eBay could also benefit, while Wayfair and Chewy face more limited impact due to existing tariff structures and diversified supply chains.
$EBAY $W $ETSY $BAC