Chinese online retailers have cut back their spending on Facebook and Instagram ads in reaction to President Donald Trump’s tough trade policy with the country.

Meta’s finance chief Susan Li said Wednesday that “Asia-based e-commerce exporters” have reduced their spending with the social media company. It’s likely those firms did so as they prepare for the de minimis trade loophole ending this Friday, Li said during a first-quarter earnings call.

“A portion of that spend has been redirected to other markets, but overall spend for those advertisers is below the levels prior to April,” Li said.

Trump in early April signed an executive order to end the de minimis trade exemptions for Chinese imports, which benefited online retailers like Temu and Shein. Analysts have said they believe that Temu and Shein make up the bulk of Meta’s 2024 China-related sales of $18.35 billion.

Meta’s advertising sales in the Asia-Pacific region were $8.22 billion for the first quarter, the company said. That was below Wall Street projections of $8.42 billion.

Li said that Meta’s second-quarter revenue would come in the range of $42.5 billion to $45.5 billion, which was in line with analysts expectations of $44.03 billion.

“It’s very early, hard to know how things will play out over the quarter, and certainly, harder to know that for the rest of the year,” Li said.

This echoes what Google said last week during its earnings call, warning that it expects headwinds to its advertising business, particularly from the Asia-Pacific region. Similarly, Snap on Tuesday said it had “experienced headwinds to start the current quarter.”

Trump’s China tariffs of 145% also appear to be impacting Meta’s Reality Labs unit, which creates virtual reality and augmented reality devices.

Reality Labs had an operating loss of $4.2 billion while bringing in $412 million in sales during the first quarter.

Meta said its 2025 capital expenditures will come in the range of $64 billion to $72 billion, which is higher than its prior outlook of $60 billion to $65 billion.

“This updated outlook reflects additional data center investments to support our artificial intelligence efforts as well as an increase in the expected cost of infrastructure hardware,” the company said in the earnings release.

Regarding the higher costs of infrastructure hardware, Li told analysts that it’s the result of “suppliers who source from countries around the world.” The higher cost of infrastructure hardware and “higher expected Reality Labs cost of goods sold” has “partially offset” Meta’s lowered projected range for its 2025 total expense, she said.

“There’s just a lot of uncertainty around this, given the ongoing trade discussions,” said Li, adding that Meta is modifying its supply chain as a result.

WATCH: Meta is showing tangible examples of AI investment.

President Trump’s tariffs have dominated global news headlines for weeks. During Microsoft‘s earnings call with investors on Wednesday, though, tariffs came up only once, during prepared remarks.

The reference from Amy Hood, Microsoft’s finance chief, had to do with sales of personal computers and Windows operating system licenses to other PC makers.

“Windows OEM and devices revenue increased 3% year over year, ahead of expectations, as tariff uncertainty through the quarter resulted in inventory levels that remained elevated,” Hood said.

While Microsoft does sell Surface PCs and Xbox video game consoles, impact will likely be less direct than it will be on companies that sell physical products.

Still, Microsoft does stand to see second-order effects, like other software vendors. Its clients might feel the effects of higher prices on goods imported into the U.S. and choose to soften their spending, and Microsoft does purchase equipment from other countries.

The Redmond, Washington-based company is investing heavily to buy and install the necessary Nvidia graphics processing units across the world to power OpenAI’s ChatGPT and other artificial intelligence products.

If anything, software might help companies respond in the event that their costs go up because of tariffs, CEO Satya Nadella said on the conference call

“I think if you sort of buy into the argument that software is the most malleable resource we have to fight any type of inflationary pressure or any type of growth pressure where you need to do more with less, I think we can be super helpful in that,” he said. “And so if anything, we would probably have more of that mindset is, how do we make sure we are helping our customers, and then, of course, we’ll look to
share gains.”

The company sells a slew of AI products, including the GitHub Copilot that spits out source code suggestions for developers and the Microsoft 365 Copilot assistant that answers questions in Excel, Teams and other productivity apps.

Microsoft shares traded up about 8% in extended trading after the call. The company reported higher revenue and earnings than analysts had predicted and issued an upbeat forecast.

WATCH: Corporate margins will be pressured as a results of tariffs, says Morgan Stanley’s Guerra

Epic Systems, the biggest electronic health records (EHR) vendor, notched its largest ever net gain in hospital market share on record in 2024, widening its lead over rival Oracle, according to a report from Klas Research on Wednesday.

Epic added a total of 176 facilities and 29,399 beds in 2024, while Oracle lost 74 sites and 17,232 beds during the same period, the report said. For the first time ever, Oracle declined to share a list of new contracts with Klas, a health-care IT research foundation. Klas said it estimated Oracle’s market share.

“Beyond strictly technological considerations, Epic’s reputation for customer partnership has brought them to the forefront of most EHR considerations,” the report said.

Oracle and Epic didn’t immediately respond to CNBC’s request for comment.

EHRs are digital versions of a patient’s medical history that are updated by doctors and nurses. The software sits at the center of the modern U.S. health-care system. Oracle became the second-largest vendor behind privately held Epic in 2022 by acquiring the medical records giant Cerner for roughly $28 billion.

Health-care organizations have cited “poor partnership and a lack of follow-through on promises” as their primary concerns with Oracle, Klas said. But there’s a sense of “cautious optimism” following some of the company’s recent technological developments, including new artificial intelligence features and the brand-new EHR Oracle announced in October.

Based on recent comments from Oracle founder Larry Ellison, his company is in a favorable spot.

Ellison spent a lot of time on the subject in fireside chats at the company’s annual Oracle Health Summit in March. And on Oracle’s quarterly call with investors in September, Ellison said his company’s EHR is equipped with AI capabilities like transcription and order distribution that make it unique.

“Our user interface is so different than Epic’s,” he said.

In a blog post in May Ken Glueck, an executive vice president at Oracle, went after Epic, calling founder and CEO Judy Faulkner the “single biggest obstacle to EHR interoperability,” a term for how different software systems exchange information.

But Oracle’s EHR software has been marred by outages and rocky deployments in recent years.

Oracle engineers mistakenly caused a five-day software outage at several Community Health Systems hospitals that was just cleared up this week. The facilities had to activate downtime procedures and to temporarily return to paper-based patient records.

“Over the last decade, Epic has been the only vendor chosen by large health systems making go-forward EHR decisions, leading to their consistent growth in market share,” the Klas report said. 

WATCH: Oracle misses on quarterly results, raises dividend by 25%