By Meghan Bobrowsky

Meta's stock had a good day.

Shares of the Facebook parent closed up nearly 8% after President Trump said the U.S. and China reached a deal to temporarily roll back tariffs. The social-media giant's chief financial officer said last month that the company had seen reduced ad spending from Asia-based e-commerce retailers in April. More than 10% of Meta's revenue came from China in 2024.

Mark Mahaney, head of Evercore ISI's Internet research team, said the stock was up because uncertainty with its China business was the main tariff concern the company mentioned on its most recent earnings call.

"The only area of weakness they called out was China-based advertisers," he said.

The de minimus loophole--an exemption that previously waived tariffs on packages coming into the U.S. whose goods were valued at $800 or less--was closed earlier this month and remains closed. Retailers in China had previously taken advantage of the loophole.

It is unclear how the closing of the loophole has affected or will continue to affect Meta's business.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

May 12, 2025 18:18 ET (22:18 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.