logo
When Trade Hits Content: Tariffs And The Creator Economy

When Trade Hits Content: Tariffs And The Creator Economy

Forbes22-04-2025

President Trump's new tariff policy is putting pressure on both creators and brands.
The latest round of tariffs is affecting big-box retailers and global manufacturers, but it's also reshaping how creators operate, what brands can afford, and who ultimately gets paid.
Earlier this month, Trump unveiled plans for a sweeping 10% tariff on nearly all imported goods and higher duties on certain countries, including China, Vietnam, and Japan.
As brands tighten budgets and rethink strategy, influencers, and brands, feel the squeeze in unexpected ways. Here's how tariffs are rippling through the creator economy.
From branded merchandise to digital products, many creators operate successful businesses that depend on overseas manufacturers and suppliers. According to FedEx, more than 70% of U.S. small businesses rely on imported goods for production or as merchandise to distribute domestically.
As tariffs drive up costs, creators face a tough choice: absorb the added expenses and accept lower profits or raise prices to cover them.
Lindsay Albanese, a lifestyle creator and small business owner of TOPTOTE, sells her products through major retailers like Nordstrom, Macy's, and Anthropologie. She took to social media to share how the tariffs impacted her business. She explains that since her products are made primarily in Vietnam, Mexico, and China, the new tariffs will hit her business directly. Albanese encouraged her audience to shop now rather than later, noting that price increases will be inevitable if she keeps producing and selling her products.
Emily Ley, Founder and CEO of Simplified a planner and stationery brand, has been using her social media presence, with over 236,000 followers, to spotlight the devastating effects the new tariffs could have on her business. Under the newly proposed 125% tariff, Ley estimates her costs could rise by $830,000 to $1 million in 2025 alone.
Although she's passionate about the idea of producing her products domestically, Ley explained in an interview that the necessary manufacturing infrastructure isn't available in the U.S. For her flagship $64 planner, the tariff would force her to raise the price to $82 – an increase she believes her customers will not accept.
For companies that manufacture products outside the U.S., tariffs force brands into tough financial decisions—either absorb higher costs for imported goods or invest in relocating their manufacturing, both of which can strain budgets.
To adapt, many companies reallocate budgets—often cutting marketing—to offset higher production and import costs. According to the Interactive Advertising Bureau, 45% of advertisers plan to reduce overall ad spend due to the financial constraints from tariffs.
A recent Duke University CMO Survey reveals that nearly half of chief marketing officers feel less optimistic about the U.S. economy than they did last quarter. With inflation putting pressure on budgets, 43.5% of marketing executives have pulled back their marketing expenditures.
Fast-fashion giants that depend on Chinese manufacturing are among the most affected by Trump's new tariffs. Shein and Halara, two major players known for building their brands through influencer marketing, have temporarily paused their U.S. campaigns, citing growing concerns over rising import costs.
In my experience negotiating paid partnerships, I've seen a noticeable shift – creators and their teams are more open to flexible deals. With brands tightening their belts and every marketing dollar under scrutiny, there's a mutual understanding that collaboration requires compromise.
Many creators are accepting rates 30% to 40% below their usual fee, reflecting how unpredictable future brand deals have become.
One upcoming policy shift could quietly reshape online shopping and hit the creator economy where it hurts most: low-cost product promotion. A lesser-known trade rule, the de minimis exemption allows packages valued under $800 from China to enter the U.S. without tariffs. That rule will expire on May 2, 2025.
The change could result in higher prices for American shoppers. For creators, it may also mean reduced sales and, as a result, lower earnings from affiliate commissions. Recent data from eMarketer shows that 30% of consumers plan to buy fewer imported goods, while 26.1% say they'll opt for U.S.-made alternatives instead.
The end of the de minimis loophole will create new challenges for creators who have built their brands around promoting affordable, budget-friendly products shipped from China and other countries. For example, a $30 order from Shein will rise to $39 starting May 2; by June 1, 2025, that same order could cost as much as $80.
Although this policy change will significantly reduce the volume of low-cost packages entering the U.S., it also offers creators a chance to rethink their strategy. By shifting focus toward higher-value products or exploring new industries less affected by tariffs, creators can reposition themselves in a more sustainable and competitive market.
As brands are left with little choice but to pass the added tariff costs on to consumers to protect their margins, creators are becoming increasingly vital in reinforcing brand value. Tom Logan, CEO and Co-Founder of Cohley believes this is where creators can shine—by helping brands communicate quality and justify the higher price point to potential and loyal customers.
"With rising prices, consumers are scrutinizing even their everyday purchases more closely," says Logan. "They're asking themselves, 'Do I need this specific brand of organic milk?' or 'Can I just go with the cheaper razor?' It's up to creators to remind them why the brand matters."
While the short-term effects may be tough, this shift also creates space for influencers to expand their partnerships. By aligning with brands prepared to adapt to rising costs or exploring new categories, creators can continue delivering value and stay relevant as the landscape evolves.
Tariffs are no longer merely a trade issue—they're reshaping how creators operate, what brands can budget for, and how products are priced.
While rising costs and shrinking marketing budgets bring new challenges, they also allow creators to play a bigger role. This is a chance to go beyond content and help brands communicate value, build trust, and stay competitive.
Creators who stay flexible, focus on quality and align with their audience's needs position themselves to succeed in this changing landscape.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

GM to invest US$4 billion to increase US output
GM to invest US$4 billion to increase US output

Yahoo

time18 minutes ago

  • Yahoo

GM to invest US$4 billion to increase US output

General Motors (GM) announced it plans to invest around US$ 4 billion in the next two years to strengthen its US vehicle production operations, in response to the recent import tariff hikes by the Trump-led US government. This new investment plan, which will result in the transfer of some production from Mexico, is in addition to the recently-announced US$ 888 million investment in the company's Tonawanda engine plant in New York State. GM confirmed it plans to increase its annual production capacity in the US to over two million battery-powered and internal combustion engine (ICE) vehicles. The plants that will benefit from the new investment include: Orion, Michigan, which will begin production of a ICE full-size SUVs and light duty pickup trucks in early 2027. The Detroit-Hamtramck plant will become the dedicated assembly location for the Chevrolet Silverado EV, GMC Sierra EV, Cadillac Escalade IQ, and GMC Hummer EV pickup and SUV. Fairfax, Kansas City, will produce ICE-powered Chevrolet Equinox from mid-2027 in response to strong demand for the recently redesigned model. The plant is also scheduled to produce the new Chevrolet Bolt EV by the end of 2025, with additional 'affordable' EV models set to follow later on. Spring Hill, Tennessee: GM plans to add the ICE-powered Chevrolet Blazer to the plant's line-up from 2027, to be produced alongside the Cadillac Lyriq and Visiq EVs and the Cadillac XT5. GM's CEO, Mary Barra, said in a statement: 'We believe the future of transportation will be driven by American innovation and manufacturing expertise. Today's announcement demonstrates our ongoing commitment to build vehicles in the US and to support American jobs. We're focused on giving customers choice and offering a broad range of vehicles they love.' The company pointed out that it currently has around fifty vehicle and parts manufacturing plants in 19 US states, including eleven vehicle assembly plants, employing a COMBINED one million people directly and indirectly, including at parts suppliers and dealers. GM's capital spending guidance remained unchanged at between US$ 10 billion and US$ 11 billion for 2025, rising slightly to between US$ 10 billion and US$ 12 billion in 2026 and 2027 to 'reflect increased investment in the US, the prioritization of key programs, and efficiency offsets.' "GM to invest US$4 billion to increase US output" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.

Trump signs resolutions killing California's zero-emissions rules
Trump signs resolutions killing California's zero-emissions rules

Yahoo

time18 minutes ago

  • Yahoo

Trump signs resolutions killing California's zero-emissions rules

This story was originally published on Trucking Dive. To receive daily news and insights, subscribe to our free daily Trucking Dive newsletter. President Donald Trump moved to sever California's EPA waivers by signing a series of joint resolutions Thursday, rolling back the Golden State's strict truck and auto emissions policies. The president's signing of joint resolutions under the Congressional Review Act reverses the Biden administration's approval of California's Advanced Clean Trucks rule. That earlier rule called for requiring 75% of Class 8 trucks sold in the state to be zero-emissions vehicles by 2035. Another resolution also prevents the state's low-nitrogen oxide (NOx) emissions rule for heavy-duty trucks from being implemented, per a statement by the president. The NOx rule intended to regulate emissions from manufacturers by cutting heavy-duty NOx emissions by 90% and overhaul engine testing procedures. The Trump administration has described his predecessor's environmental policies as overreach and unjustified mandates. Trump said the congressional moves he signed further restrict California from implementing a similar policy in the future. "Under the Congressional Review Act, the EPA cannot approve any future waivers that are 'substantially the same' as those disapproved in the joint resolutions," Trump said in a statement. "Accordingly, the joint resolutions prohibit the EPA from approving future waivers for California that would impose California's policy goals across the entire country and violate fundamental constitutional principles of federalism, ending the electric vehicle mandate for good," the statement said. In response, California Gov. Gavin Newsom declared the federal measures illegal and moved to sue the federal government, seeking to pursue the state's zero-emission vehicle policy. Newsom signed an executive order on Thursday for the state to continue regulation requiring that 100% of sales of new vehicles be zero emission by 2035 for cars, pickup trucks and drayage trucks and by 2045 for medium- and heavy-duty trucks. Trucking leaders applauded Trump for the measures. The Owner-Operator Independent Drivers Association said the news was a big win for both men and women behind the wheel. 'Our 150,000 small-business members have been saying it all along—electric trucks just aren't a realistic option right now. They're too expensive, the charging infrastructure isn't there,' OOIDA President Todd Spencer said in an emailed press release to Trucking Dive. Industry advocates, including the American Trucking Associations and the Washington Trucking Associations, also warned that electric truck technology and charging infrastructure were not caught up to accommodate California's ambitious EV policies. 'We've done our part to reduce carbon emissions while keeping America's economy moving,' ATA President and CEO Chris Spear said in a press release. 'But what we need is federal leadership to set realistic and achievable national emissions standards. And today brings us one step closer toward that goal,' he added. Werner Enterprises truck driver Gina Jones shared a similar sentiment, speaking as part of the signing ceremony at the White House. 'We cannot allow one state's regulations to disrupt our entire nation's supply chain,' Jones said. 'Allowing California to do so would have [negatively] impacted the hundreds of thousands of truck drivers who deliver critical goods across the country each and every day.' Recommended Reading Congress revokes Advanced Clean Trucks waiver, creating ambiguity for refuse fleets Inicia sesión para acceder a tu portafolio

Tesla stock rises as US moves to ease rules for self-driving cybercab
Tesla stock rises as US moves to ease rules for self-driving cybercab

Yahoo

time18 minutes ago

  • Yahoo

Tesla stock rises as US moves to ease rules for self-driving cybercab

-- Tesla (NASDAQ:TSLA) stock rose 2.6%, hitting a session high on Friday after a report that the US government is taking steps to ease regulations that have hindered the deployment of self-driving vehicles without driver controls. According to Bloomberg, the Trump administration is streamlining the exemption process for automakers seeking to deploy self-driving cars designed without traditional steering wheels or brake pedals. This regulatory shift could significantly benefit Tesla's ambitions to launch its robotaxi service. The National Highway Traffic Safety Administration (NHTSA) announced it will simplify the exemption procedure, which previously resulted in processing times that could stretch for years. In a letter posted to its website on Friday, NHTSA Chief Counsel Peter Simshauser stated the agency "anticipates reaching decisions on most exemption requests within months rather than years." Current federal safety standards effectively require new vehicles to include human driving controls, forcing companies developing autonomous vehicles to seek exemptions - a process that has created substantial delays for manufacturers. While Tesla shares climbed on the news, ride-hailing companies Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT) saw their shares edge lower, potentially reflecting investor concerns about future competition from autonomous taxi services. The regulatory changes align with Tesla CEO Elon Musk's previously announced plans to develop a fleet of self-driving "Cybercabs" that could compete directly with traditional ride-sharing services. Related articles Tesla stock rises as US moves to ease rules for self-driving cybercab Air India 787-8 accident - What we know so far Brookfield Infrastructure reportedly acquiring Hotwire for $7 billion

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store