Many industries continue to look forward with uncertainty as the future of President Donald Trump’s tariffs remains unknown, leading influencers to wonder what comes next.
Market volatility has enraged Democrats and worried many Republicans as the country experiences whiplash from tariff announcements, leaving many people worried about their finances.
The market volatility seen this year affects all aspects of the country but threatens to change how new media functions, mere months after TikTok users had some relief as Trump vowed to “save” the popular app following Congress passing a bill last year banning it. While the president may have spared these new media phenomena a few weeks of stable income, the tariffs have threatened their income again.
“I think there’s a direct and an indirect impact. Consumers spend not only based on prices and the market, but also how they feel about the market,” a content creator and former Hill staffer told the Washington Examiner.
“Even if prices only change minimally, people will feel like the economy is worse, and they’ll just spend less, and they’ll spend less on discretionary spending. So the fun stuff, which is obviously all that influencers are posting, so then if they’re not making money off of affiliate links, or it feels kind of maybe tone deaf to do like a haul video because people are feeling like, ‘We’re about to be in a recession,’ then how are they making money?”
Content creators make much of their income from brand deals in which they post a sponsored ad or work with the brand. Another major source of income for them is affiliate links, URLs that track clicks and purchases, allowing the creator to earn commission from sales. Many influencers use affiliate links to Amazon or TikTok Shop, which contain a lot of fast fashion, and post videos promoting the items they have linked to drive traffic to their sites.
TikTok Shop has been described as “a completely personalized and fully integrated commerce solution, where sellers authentically connect with creators and communities to drive meaningful shopping experiences.”
The Bureau of Economic Analysis released data Friday showing spending only rose 0.2% in April compared to 0.7% the month before, as many consumers have held off due to the uncertainty of the economy and tariffs. Influencer income that comes from brand deals or affiliate links relies on consumer spending on goods that are not necessities, which means this change in spending could affect their income.
An AfterShip and Ipsos study shows that one in three young Americans shop on social media weekly. With TikTok Shop leading the way on direct real offering, Instagram has also offered ways to shop since 2019. However, this usage differs from age categories, according to a Pew Research Study. Users from 18 to 34 are much more likely than older generations to use TikTok. Younger users are inclined to use TikTok for product reviews, with 74% of users from 18 to 29 saying this is why they use the app.
“If brand’s margins are tough, the market feels unstable, as it does, they’re going to be doing less and less brand deals,” the content creator continued. “So I do feel like it will have a huge impact, kind of a multi-pronged way on the influencer economy.”
Fast fashion is another area that could be deeply affected by the tariffs and, in turn, affect content creators. An executive order by Trump removed duty-free shipping on goods from China for small-value packages, also known as “de minimis” shipping, which was previously used by fast fashion companies such as Temu and Shein.
Australian online boutique Princess Polly, whose suppliers are mainly based in China, has made many partnerships with influencers. Influencers are given a set amount to spend on the website and, in return, post a video haul of all the clothes they got after the brand approves the content. Not only do the tariffs affect the suppliers of brands like Princess Polly, but the market could also affect how viewers perceive these hauls.
The New York Times reported that Clorox CEO Linda Rendle said on a call with analysts earlier this month that tariffs were changing consumer behavior “dramatically,” with shoppers adopting “a conserving behavior in many of our categories.”
“I think there’s a level of optics that people are going to be reconsidering,” the former Hill staffer continued.
“I think of fast fashion [and] I’m like, it’s fun, it’s affordable. Yes, it’s like polyester, but it’s only like 20 bucks, and people aren’t expecting it to last forever. But if they’re now charging 50 bucks for a T-shirt, that’s certainly not worth it. I’m not going to want to post about that either,” she added.
GOP SADDLED WITH TARIFF WHIPLASH AS TRUMP HEADS FOR SUPREME COURT SHOWDOWN
Trump’s sweeping tariff announcement earlier this year has been a major talking point for both political parties. The president announced a 10% standard tariff on all imports to the United States on “Liberation Day”. Many of the tariffs put in place on this day were paused, but the status quo remains, with a 10% baseline on most foreign trade partners, 25% on Canada and Mexico, and 20% on China.
The U.S. Court of International Trade ruled on Wednesday that Trump lacked the emergency powers to impose the 10%. U.S. District Judge Rudolph Contreras of the District of Columbia handed down a second, narrow order blocking portions of his tariffs Thursday. Both rulings were appealed by the administration, and a federal appeals court determined the tariffs can remain in effect during legal challenges.