Gaming Suppliers Navigate "TACO Trade" Volatility as US Supreme Court Overturns Liberation Day Tariffs

A year after "Liberation Day," gaming manufacturers struggle with a 9% stock decline and a complex US Supreme Court ruling on unconstitutional tariffs.

By: AXL Media

Published: Apr 9, 2026, 11:05 AM EDT

Source: Information for this report was sourced from iGB

The Aftermath of Liberation Day and the "TACO Trade"

The global gaming supply chain remains in a state of flux exactly one year after US President Donald Trump introduced sweeping tariff changes on April 2, 2025. Initially driving the average effective US tariff rate to 22.5%, the highest in over a century, the policy was followed by a series of retractions and renegotiations. This pattern of aggressive proclamation followed by sudden delay led Wall Street analysts to dub the period the "TACO Trade"—an acronym for "Trump Always Chickens Out." While the volatility has stabilized, the Association of Gaming Equipment Manufacturers (AGEM) reports that manufacturers are still forced to operate with a heightened level of dynamism to account for sudden trade disruptions.

Supreme Court Intervention and Refund Confusion

In February 2026, the US Supreme Court struck down a significant portion of the tariffs, ruling that the International Emergency Economic Powers Act (IEEPA) did not grant the executive branch the authority to enact such broad economic measures. This ruling has left an estimated 165 billion dollars in collected revenue in limbo. According to data from Yale University’s Budget Lab, while a refund system is the expected outcome, specific guidance from the federal government remains absent. A recent KPMG survey indicates that while 62% of companies across various industries expect refunds, only 28% are actively pursuing them due to concerns that legal fees may exceed the potential recovery.

The AGEM Index and Market Divergence

The financial impact of this trade uncertainty is reflected in the AGEM Index, which tracks the share performance of nine major global suppliers. As of March 2026, the Index sat at 1,472, representing a 9% decrease from the previous year. This slump stands in stark contrast to the broader market, where the S&P 500 and Nasdaq Composite have seen gains of 16% and 23% respectively over the same period. Notably, the current manufacturing disruptions have had a more sustained negative impact on supplier stocks than the Covid-19 pandemic, with the Index falling more than 300 points in the first quarter of 2026 alone.