By Katherine Blunt

Shares in Google-parent Alphabet rose 3.7% Monday after the U.S. and China reached an agreement to temporarily roll back some tariffs.

The Trump administration recently closed the so-called de minimis loophole for Chinese imports, which had allowed imported goods valued below $800 to enter the U.S. free of tariffs. Google said last month that it expected that change to affect its ad business as Asian retailers pull back on ad spending.

While the de minimis loophole remains closed under the new tariff agreement announced Monday, analysts say the agreement could benefit Google by potentially softening the effect on ad spending.

"For e-commerce, the question is, how will supply chains move?" said MoffettNathanson analyst Michael Nathanson. "The tariffs themselves being lifted, or any kind of pause, obviously is great for demand...but the de minimis shipping changes also have pretty dramatic impact."

Alphabet shares fell sharply last week after Apple executive Eddy Cue testified in federal court that Google searches within Safari during the past two months fell for the first time in more than 20 years. He also said Apple is planning to add AI-driven search options to the browser within the next year as products including ChatGPT and Perplexity improve.

Google responded in a blog post that it has seen an increase in total searches coming from Apple's devices and platforms.

Cue testified as part of the U.S. Justice Department's lawsuit against Google. The judge overseeing the case last year ruled that Google illegally maintained its search monopoly and is now considering remedies.

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May 12, 2025 16:52 ET (20:52 GMT)

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