Amazon and Facebook-parent Meta may face significant losses due to US President Donald Trump’s latest tariffs, a report claims. Citing analysts and advertising industry insiders, Business Insider claims that Chinese advertisers , who account for a major chunk of Amazon and Meta’s ad revenues targeting US consumers, may reduce or halt their ad spending in response to the increased trade barriers. This could result in a notable loss of business for both tech giants.
The report comes after Trump announced tariffs that include a baseline 10% duty on all imports from outside the US, with some countries — notably China — facing a much steeper rate of 54%. The announcement led to a sharp drop in tech stocks. Meanwhile, Beijing has retaliated with a 34% duty on US imports.
Analysts predict Trump’s tariffs may affect Meta and Amazon’s ad business
In a note (seen by Business Insider), Brian Wieser, a veteran advertising analyst, wrote: “Retail media and digital media will be significantly impacted by these tariffs, especially because products shipped from China and Vietnam are meaningful to Meta and Amazon.”
Wieser highlighted that nearly $10 billion of Meta’s US revenue comes from international advertisers, primarily from China.
Research published by Marketplace Pulse in January shows Chinese sellers make up half of Amazon’s top US marketplace vendors and may serve as a major driver of the company’s advertising revenue.
Considering the Weiser global interconnectedness of supply chains, the impact of tariffs is likely to extend across all product categories and advertising platforms, Wieser predicted.
He even noted that Apple could be particularly affected due to its heavy reliance on Chinese manufacturing. However, he stressed that the situation remains highly fluid, making precise forecasts difficult at this stage.
"There's no sector that doesn't get hit by this," Wieser added.
The report even cited Eric Haggstrom, director of market intelligence at Advertiser Perceptions, who said: “The biggest losers you're going to see right now are companies based on Chinese-based advertising: social media and retail media.”
Meanwhile, some analysts argued that Amazon, Meta, and Google would remain resilient despite the tariffs, and this may become possible due to the scale, measurable performance and a strong ability of these companies to deliver results for advertisers, the report pointed out.
The report comes after Trump announced tariffs that include a baseline 10% duty on all imports from outside the US, with some countries — notably China — facing a much steeper rate of 54%. The announcement led to a sharp drop in tech stocks. Meanwhile, Beijing has retaliated with a 34% duty on US imports.
Analysts predict Trump’s tariffs may affect Meta and Amazon’s ad business
In a note (seen by Business Insider), Brian Wieser, a veteran advertising analyst, wrote: “Retail media and digital media will be significantly impacted by these tariffs, especially because products shipped from China and Vietnam are meaningful to Meta and Amazon.”
Wieser highlighted that nearly $10 billion of Meta’s US revenue comes from international advertisers, primarily from China.
Research published by Marketplace Pulse in January shows Chinese sellers make up half of Amazon’s top US marketplace vendors and may serve as a major driver of the company’s advertising revenue.
Considering the Weiser global interconnectedness of supply chains, the impact of tariffs is likely to extend across all product categories and advertising platforms, Wieser predicted.
He even noted that Apple could be particularly affected due to its heavy reliance on Chinese manufacturing. However, he stressed that the situation remains highly fluid, making precise forecasts difficult at this stage.
"There's no sector that doesn't get hit by this," Wieser added.
The report even cited Eric Haggstrom, director of market intelligence at Advertiser Perceptions, who said: “The biggest losers you're going to see right now are companies based on Chinese-based advertising: social media and retail media.”
Meanwhile, some analysts argued that Amazon, Meta, and Google would remain resilient despite the tariffs, and this may become possible due to the scale, measurable performance and a strong ability of these companies to deliver results for advertisers, the report pointed out.
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