0827 ET - The closing of the de minimis tariff loophole is set to hit Meta, Google and Pinterest, which rely on ad spending by China-based companies, according to Deutsche analyst Ben Black. Black says that as part of the reciprocal tariff announcements the Secretary of Commerce noted that the duty-free de minimis treatment for covered goods from China and Hong Kong is ending on May 2nd. Black forecasts a $4.9 billion decline in digital ad spend if Chinese merchants, who rely on the loophole to avoid tariffs, cut their ad spending by 70%. The loophole allows duty-free trading on goods under a certain price. China-based companies using the loophole, such as Temu and Shein, spent about $7 billion on U.S. digital advertising in 2024, Black says. (katherine.hamilton@wsj.com)
(END) Dow Jones Newswires
April 07, 2025 08:28 ET (12:28 GMT)
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