Meta continues to show incredible resilience despite the unstable economic conditions. It continues to extend its historic gain streak, thriving as though there were no ongoing tariff tensions between the US and China.
The same can not be said for Google and Nvidia, two tech giants also based in the US. Both companies found themselves on the defensive after China launched antitrust investigations against them. Observers believe this is partly in response to the tariffs imposed by the new Trump administration.
Intel is not doing better, either. The company is also under scrutiny as China is considering launching a new probe against it.
Meta continues to succeed while others struggle
Meta is one of the top-performing mega-cap companies with strong ties to the US. It recently posted an impressive 18% increase in its stock value, while Nvidia’s stock dipped below its 50-day moving average and failed to find support at its 200-day line.
As a tech company in a similar industry as Nvidia and Google, Meta’s stocks were expected to take a beating following President Trump’s executive orders imposing 25% tariffs on Mexican and most Canadian imports and 10% on goods from China.
One report even listed Meta and Google as the “most exposed to cross-border e-commerce trends,” with analysts estimating that 11% of Meta’s ad revenue and 7% of Google’s search revenue come from China-based advertisers.
However, Meta’s exposure may be limited due to shifting ad spending, which helped maintain its position as a top performer in current markets.
China goes after American companies in response to Trump’s tariffs
In retaliation to the US tariffs, China announcedantitrust and antimonopoly investigations into Google and Nvidia. The second-leading economy in the world is also considering new investigations against US companies like Intel as part of its effort to exert pressure on American companies.
The tariff drama already triggered volatility in the tech space. Nvidia, Google, and Intel are facing pressure, while America-facing companies like Amazon and Etsy are expected to benefit from reduced competition from Chinese cross-border sellers.
Analysts estimate that Temu, Shein, and TikTok Shop will account for $78 billion in US e-commerce sales in 2025, a 40% year-over-year increase, with a 6% US market share.
As far as Etsy is concerned, lower competition could improve marketing efficiency. Observers estimate that a return to customer acquisition costs seen in Q3 2022 could drive ~20% accretion to 2025 EBITDA.
Meanwhile, Amazon could benefit from higher average order values, which are estimated to be ~40bps accretive to 2025 operating income margins.
Some US companies, including PVH Group and Illumina, Inc., have also been added to China’s ‘unreliable entity’ list, citing violations of market principles.
China’s moves will constitute a nuisance as US companies may face increased costs and supply chain disruptions due to the tariffs and export controls.
China vs. Trump: Large corporations suffer while giants fight
Trump’s executive orders not only impose 25% tariffs on Mexican and most Canadian imports and 10% on goods from China, it also suspend the Section 321 customs de minimis exemption, which has allowed low-cost imports under $800 to enter the US tariff-free.
According to analysts, Temu, Shein, and other cross-border merchants were already in the process of near-shoring goods in anticipation of de minimis threats. However tariffs on Mexico and Canada have still increased costs for those goods.
As a result, American consumers will now have to pay higher prices for low-cost cross-border goods. They are also most susceptible to the fallout despite Trump’s promises that there will be no price hikes.
China has now imposed 15% tariffs on American coal and liquefied natural gas and 10% tariffs on crude oil, farm equipment, and certain vehicles.
China has also filed a complaint with the World Trade Organization, arguing that the US tariffs violate WTO rules and disrupt normal trade cooperation.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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