Watch these stocks as Trump's tariffs create more uncertainty

After a Supreme Court decision last week that ruled against his larger levies, tariff uncertainty has returned.

Wall Street analysts expect emerging market exchange-traded fund and retailers to benefit in the end.

Here are some stocks, ETFs, and sectors that could be affected by the latest twists in the?U.S. Trade policy:

Retail and Consumer

Analysts at Jefferies pointed out that consumer electronics retailer Best Buy and luxury brands Ralph Lauren, as well as sportswear giant Nike are among the companies most likely to benefit from a tariff reduction.

According to Jefferies, Target and Elf Beauty are also among those who will benefit.

Morgan Stanley analysts said that toys, sports equipment, and games which were subject to a high tariff rate in the beginning may benefit from Trump's new levy, as it will be 4% lower than before.

E-COMMERCE COMPANIES

According to BofA?Research, small and midcap ecommerce stocks will likely have a mixed effect.

Etsy and eBay were all up after the Friday ruling. Trump's global tariff will likely create ambiguity.

According to BofA's analysis, Etsy is the company that is least susceptible to the volatility of tariffs, due to its wide range of trade routes and countries. About half of Etsy's buyer and seller networks are located outside of the U.S. and no one country accounts for more than 4% total gross sales.

The brokerage stated that online pet products retailer Chewy and Wayfair will likely be the least impacted. Furniture platform Wayfair is among those who have already adapted to tariffs last year.

PAPER, LUMBER, AND PACKAGING

Analysts said that the tariff ruling will likely reduce the competitive advantage local packaging and wood companies had over cheaper imported products.

RBC analysts warned of negative impacts on companies like Clearwater Paper and Sylvamo.

Recent survey results showed that a majority U.S. buyers reported lower prices for containerboard in February. Meanwhile, a surge of European imported goods boosted the supply and increased pricing pressure.

Smurfit, a U.S. based company, and International Paper, a U.S. based company, both fell 7% and 6% on Monday.

AUTOMOBILES

Barclays analysts say that the ruling will not bring relief to legacy automakers such as Ford Motor and General Motors, which have been affected by the tariff storm ever since Trump began his second term.

They said that most of the tariffs for the industry are under Section 232 of Trade Expansion Act of 1964?and will not be affected by removing the IEEPA levels.

Steel, Aluminum and Copper

Analysts at ING and UniCredit have noted that steel, aluminum, and copper producers such as Steel Dynamics, Alcoa, and Freeport-McMoran will also likely not feel any impact, since the tariffs will continue to be in place under Section 232.

Emerging Markets

The majority of brokerages believe that?China will be one of the economies to benefit most from the new U.S. Tariffs.

Hong Kong's benchmark stock index closed 2.5% higher Monday with tech stocks such as Alibaba? and Tencent jumping.

Morgan Stanley analysts and J.P. Morgan expect China tariffs to drop to 24%?and 27%?from the previous 32%?

India, Brazil, and most Southeast Asian economies are also expected to benefit.

Morgan Stanley analysts predict that India's tariffs will fall by 14%. Reporting by Johann M Cherian in Bengaluru, Shashwat Chanhan and Rashika Singh; editing by Sriraj Kalluvila

(source: Reuters)