Donald Trump’s Tariff on Cheap Chinese Imports to Cost Big Tech Billions
The expansion of a loophole for tariff-free shipments of goods nearly a decade ago gave rise to low-cost online retailers like Temu and Shein, which offer items directly from Chinese factories at significantly discounted prices. This development also triggered a massive digital advertising campaign that benefited tech giants such as Meta and Alphabet.
Temu and Shein flooded the internet with advertisements to capture the attention of American shoppers. According to a report, in the past two years, these companies spent billions of dollars on digital advertising, providing a substantial windfall for major technology companies.
The impending tariff imposed by Donald Trump is expected to impact these tech giants financially. The Economic Times reported that the tariff on cheap Chinese imports will cost Big Tech billions of dollars.
Amazon sellers are stocking up in anticipation of the tariffs, but experts consider this a short-term fix. The development comes as the US government continues to navigate trade policies with China.
Other news in the tech space includes Apple’s relaxation of App Store rules under court pressure and the US Department of Justice’s demand to break up Google’s ad tech business.
The article was originally published on May 3, 2025, by The Economic Times.
