Amazon and Meta Stocks Surge After Trump Reduces Tariffs on 'De Minimis' Shipments from China

After Trump reduces tariffs on "De Minimis" Chinese imports, Amazon and Meta stock prices rise. In a significant shift in trade policy, former President Donald Trump announced a reduction in tariffs on small-value shipments from China and Hong Kong, sending ripples through global markets and boosting the share prices of several U.S. tech giants. Amazon and Meta Platforms were among the top beneficiaries, with their stock prices climbing on expectations of lower costs and renewed advertising momentum.

The "de minimis" threshold, a trade rule that allows imported goods valued under $800 to enter the United States duty-free and without rigorous customs inspections, is the focus of the decision. This provision has become a strategic advantage for Chinese e-commerce giants such as Shein and Temu, allowing them to ship low-cost goods directly to American consumers at scale. In recent years, these platforms have gained massive popularity in the U.S., especially among price-sensitive shoppers.

Under the new policy, the Trump administration has cut the tariff rate on these shipments from 120% to a band between 54% and 120%, depending on product category and risk assessment. In order to maintain a firm stance on China's trade practices while also balancing the interests of American consumers and businesses, the change is being framed as a recalibration of trade pressure rather than a retreat. The impact on financial markets was immediate. Amazon, which has expanded its direct-from-China model through its Haul service, saw its stock rise over 2% in the trading session following the announcement. The reduced tariff burden means lower sourcing costs, particularly for low-priced, high-volume items popular on the Haul platform. Investors interpreted this as a positive for Amazon’s profit margins and competitive positioning against international rivals.

Meta Platforms, the parent company of Facebook and Instagram, also saw a notable increase in its share price—gaining over 3% on the day. The social media conglomerate is a major advertising partner for Chinese e-commerce companies. Both Temu and Shein had scaled back their ad spending in recent quarters due to rising shipping costs and tariff pressure. The reduced costs associated with shipping de minimis goods are expected to reignite ad budgets, bringing new revenue opportunities for Meta.

This development marks a potential turning point for the digital advertising and online retail sectors. With trade costs easing, Chinese platforms may again aggressively pursue U.S. consumers, pouring millions into ad campaigns across platforms owned by Meta, Alphabet, and even Amazon itself. Analysts believe this could spark a renewed wave of competition in online retail, benefiting consumers but challenging domestic players to defend market share.

From a policy standpoint, the decision is somewhat unexpected. The de minimis threshold had become a lightning rod in debates over U.S.-China trade, with critics arguing that it allowed Chinese firms to exploit loopholes, avoid tariffs, and ship counterfeit or unregulated goods into the U.S. Several lawmakers had pushed for tighter controls and a lower threshold. Trump’s decision to ease tariffs instead of increasing scrutiny appears to be a strategic calculation aimed at calming inflation and restoring business confidence heading into election season.

Economists have mixed views on the long-term impact. While the tariff reduction offers immediate cost relief to importers and consumers, it may reignite concerns over trade fairness, domestic manufacturing, and regulatory oversight. U.S. retailers could see price competition intensify, and domestic producers might feel renewed pressure from low-cost imports. Nonetheless, some experts contend that the de minimis model accurately reflects global e-commerce realities and that adapting to them is a smarter strategy than trying to break them down. On the macroeconomic front, the move is seen as a signal that trade tensions may ease in the near term. Goldman Sachs has already adjusted its recession forecast downward, citing increased consumer spending power and improved trade flows. Investors are cautiously optimistic that the tariff reduction could be the first step in a broader de-escalation of U.S.-China trade hostilities.

However, uncertainty remains. The new tariff structure is variable and may change again depending on geopolitical developments or economic shifts. Moreover, it does not resolve structural issues such as intellectual property rights, forced technology transfers, or China’s state subsidies—points that remain contentious between the two global powers.

In the short term, though, the markets are celebrating. Amazon and Meta’s rally reflects broader investor confidence that reduced trade friction will benefit the tech and e-commerce sectors. With consumers likely to see lower prices and companies poised to spend more on digital advertising, the effects of this policy change could reverberate through the economy in the coming months.

For now, the reduced tariffs on de minimis shipments are a win for platform giants, advertisers, and global shoppers alike—offering a rare moment of optimism in an otherwise complex and evolving U.S.-China trade relationship.