Prediction: These 3 Stocks Will Soar If the Supreme Court Nixes Trump's Tariffs

The U.S. Supreme Court has a history of being the final arbiter on controversial issues. And it could be about to do it again.

Last week, the highest court in the land heard arguments for and against the tariffs implemented by the Trump administration based on the International Emergency Economic Powers Act (IEEPA). Although the Supreme Court hasn't announced its decision yet, the comments made by several justices seem to point to a ruling against the White House. Prediction markets also put relatively high odds in favor of a reversal.

It's a good bet that the stock market will react positively if the Supreme Court indeed nixes Trump's tariffs. Here are three stocks that I predict will especially soar.

Image source: Getty Images.

1. Apple

A large percentage of iPhones, iPads, and Macs sold by Apple (NASDAQ: AAPL) are made in China. India is another major manufacturing location for the company. Imports from both countries have been hit hard by the tariffs the Trump administration levied using the IEEPA.

Apple CFO Kevan Parekh said in the fiscal 2025 fourth-quarter earnings call that tariffs cost the company $1.1 billion in Q4. He stated that this amount would likely increase to $1.4 billion in the first quarter of fiscal 2026, which ends on Dec. 31, 2025.

Those amounts are relatively small compared to the quarterly revenue of over $100 billion that Apple rakes in. However, we're not talking about chump change -- especially if the Supreme Court forces the federal government to issue refunds to companies negatively affected by the IEEPA-based tariffs.

Apple is already surfing a wave of enthusiasm over its strong iPhone sales. Should the Supreme Court overturn Trump's tariffs, I suspect this high-flying stock in recent months will be among the top ones that investors flock to in celebration.

2. General Motors

General Motors (NYSE: GM) was one of the hardest-hit auto stocks when the White House first announced steep tariffs earlier this year. That's because many of the vehicles sold by the company in the U.S. are assembled in Canada or Mexico.

Like Apple, GM is seeing the negative impact of tariffs in its financial results. In the third quarter of 2025, the automaker reported a gross tariff cost of $1.1 billion. GM expects total tariff exposure of between $3.5 billion and $4.5 billion for full-year 2025.

It's important to note that the Trump administration based the main tariffs for imported vehicles on Section 232 of the Trade Expansion Act of 1962 rather than the IEEPA. The anticipated Supreme Court ruling won't affect the Section 232 tariffs. However, some components used in manufacturing cars and trucks are subject to tariffs based on the IEEPA.

My hunch is that many investors won't care about the details if the Supreme Court decides against the White House. I suspect that GM's shares will take off in this scenario.

3. United Parcel Service

United Parcel Service (NYSE: UPS) CEO Carol Tomé was blunt in her comments about tariffs during the company's second-quarter earnings call. She stated, "Trade follows policy, and generally, tariffs are not good for trade."

Her view was backed up by UPS' Q2 numbers. The average daily volume in the company's China-to-U.S. trade lane (its most profitable lane, by the way) plunged roughly 35% in May and June.

Granted, UPS' results improved somewhat in the third quarter. However, Tomé warned in the package delivery giant's Q3 earnings call that small- and mid-sized enterprises (SMEs) could "feel the full brunt" of tariffs in 2026. These customers are an important segment of UPS' business.

A Supreme Court decision that reverses the Trump administration's tariffs based on the IEEPA could help UPS and many of its customers. Unsurprisingly, when asked about the court's upcoming ruling, Tomé acknowledged, "[O]bviously, we'll be watching it very closely." I think UPS stock will be a big winner if the court hands down the decision that many observers anticipate.

Keith Speights has positions in Apple and United Parcel Service. The Motley Fool has positions in and recommends Apple and United Parcel Service. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.