Big Tech execs had front row seats at President Donald Trump’s inauguration in January. About 100 days later, and this week’s latest earnings calls show what impacts tariffs have had and how the companies are bracing for a financial storm.
This week, numbers from the Commerce Department revealed the nation’s economy shrank during the first quarter of 2025—the first decline since the opening three-month period of 2022.
U.S. gross domestic product—the value of all goods and services produced across the country—fell at a seasonally adjusted 0.3% annual rate, as companies increased imports and prepared to navigate the Trump administration’s tariffs.
For Big Tech firms, that impact is manifesting in a range of ways. Apple is eyeing a $900 million cost hit by mid-2025, while Microsoft leans on AI to buffer economic pressure. As uncertainty clouds global trade, Google, Meta, and Amazon also face shifting costs and supply chain headaches.
Here’s what the Silicon Valley titans had to say during their earnings calls this week.
De minimis exemption may sting Google’s ads business
Google flagged that changes to the de minimis exemption could pose a “slight headwind to our ads business in 2025, primarily from APAC-based retailers,” svp and chief business officer Philipp Schindler said during the earnings call with investors.
When asked by an investor whether any specific ad verticals or regions were showing signs of weakness quarter-to-date, Schindler said the company is “obviously not immune to the macro environment,” but declined to speculate further. He did not directly address tariffs.
Meta sees Asia ad pullback tied to de minimis exemption
Meta pointed to reduced ad spend from Asia-based ecommerce exporters ahead of the May 2 expiration of the de minimis exemption. Chief financial officer Susan Li said some of that spend has shifted to other markets, but overall levels remain below what the company saw prior to April. She added that there’s still uncertainty about how the change will affect Q2 performance.
