Meta Could Take $7 Billion Hit from Tariffs

Meta Platforms could lose $7 billion in advertising revenue from Chinese companies due to US tariffs, MoffettNathanson senior MD Craig Moffett suggested in a research note. The research pointed to Meta’s latest annual report, which shows its China-based revenue was $18.3 billion last year, accounting for more than 11% of its total sales.

Moffett stated that while Meta does not offer its social media sites in China, companies located there with international operations use its platforms to reach consumers abroad. E-commerce companies such as Temu and Shien are cutting their Facebook and Instagram advertising budgets due to the ongoing trade dispute between the US and China, according to Moffett, who noted Temu paused all US-based advertising in early April.

“While Meta does not provide a country-level breakdown of revenue within Europe, we logically can presume that China is Meta’s second-largest revenue source after the United States, a remarkable position for a country where Meta has no users or active platforms,” Moffet wrote. The research note explained that a truly prolonged economic downturn, coupled with a US and China trade war, could wipe $23 billion in 2025 advertising revenues off Meta’s books.