As Mark Zuckerberg’s Meta Corporation reported its first-quarter earnings this week, the company said it expects costs to rise. Meta cited tariffs recently announced by U.S. President Donald Trump as one reason.
As Mark Zuckerberg’s Meta Corporation reported its first-quarter earnings this week, the company said it expects costs to rise. Meta cited tariffs recently announced by U.S. President Donald Trump as one reason.
«The higher costs we expect to incur on infrastructure equipment this year are actually related to suppliers who source products from countries around the world,» CFO Susan Lee told analysts, The Register reports .
She added that Meta is working to diversify its supply chains to mitigate some of these costs. «There’s just a lot of uncertainty around this, given the ongoing trade negotiations,» Lee noted.
According to expectations that Meta’s CFO reported on Wednesday, April 30, Meta’s capital expenditures for the full year of 2025, including principal payments on finance leases, will be between $64 billion and $72 billion. In January, the corporation forecasted expenditures at $60-65 billion. Comparing the upper ranges, the potential increase is about $7 billion.
Lee said the increase in corporate costs is not only due to the tariff increase. The statement from the CFO also said that the updated forecast reflects additional investments in data centers to support our artificial intelligence efforts, as well as an increase in the expected cost of infrastructure equipment. «The majority of our capital expenditures in 2025 will continue to be directed to our core business,» she said.
Recall that in early April, US President Donald Trump announced updated customs tariffs for a number of countries. Due to the new tariffs, large technology companies, including Apple, Meta, Amazon and Microsoft, could lose all of their net profit by 2025.
Trump also signed an executive order closing a loophole for cheap goods from China, which takes effect on May 2. Previously, packages worth up to $800 enjoyed a «minimal» exemption from additional duties, allowing foreign online retailers like Temu and Shein to sell super-cheap goods to American consumers.
On Wednesday, after a surprise post on the social network Truth Social, Donald Trump canceled the trade tariffs that had taken effect earlier that day.
