The news: President Donald Trump’s 10% tariffs on goods imported from China took effect Tuesday, setting the stage for a potential pullback in ad spending from Chinese retailers like Temu and Shein, which have fueled growth at the leading US ad platforms.

• Trump also eliminated the de minimis exception, which allowed foreign retailers to ship goods to US consumers without facing tariffs, further increasing operating costs.

Zooming out: Temu and Shein built billion-dollar businesses by using the de minimis exception and offering low-cost goods to US consumers, making the US their largest market. If tariffs result in higher costs and a pullback in spending on the two platforms, Meta could see a significant hit to its ad revenues.