The trade war’s surprising targets: content creators

Entertainers can't be tariffed — at least not yet — but content creators, especially those who double as small business owners, are in a world of their own when it comes to the impacts of President Donald Trump's sweeping global tariffs.

We're in a trade war. Last month, Trump announced a 10-percent levy on nearly all imports, plus steeper tariffs targeting specific countries like China, Vietnam, and Japan. The president even placed tariffs on a remote, uninhabited island called home by a bunch of penguins. As it stands, there's a 145-percent tariff on all Chinese goods bound for the U.S., with some exceptions, and a 25-percent tariff on all goods from Mexico and Canada. 

The tariffs have been a bit of a moving target, causing economic distress for business owners and people who buy things from businesses, which is pretty much everyone. And for those who are part of the ever-growing $250 billion creator economy, these tariffs can have a pretty steep effect. Influencers, content creators, and entrepreneurs make money online in a variety of ways, and sometimes a combination of them all: selling their own goods, signing onto brand deals to sell other companies' goods, entertaining us, and, of course, using TikTok — a social media giant whose parent company is based in China and is already at the center of other U.S.-China debates.

It seems like the tariffs are affecting every industry. So what do they mean for the tens of millions of people who work within the creator economy?

How tariffs might affect small business owners — and how they can leverage social media to fight back

The line between small business owner, content creator, and influencer might seem blurred, but the tariffs can really put things into perspective. Take Chelsey Brown, founder of Curio Blvd, a home goods brand known for its sentimental items like the Time Capsule Journal and the Keepsake Case, which Brown said "went viral" a year ago and is built in China. She doesn't identify as an influencer, and actively does not send her products to influencers to review, but she's a savvy user of social media when it comes to getting the word out about her products.

Now, due to the tariffs, she’s had to take out a loan to keep her business going, and she's even considering closing Curio Blvd.

"We found out about the tariff on April 2, and by that time, the tariff went from 20 to 54 percent," Brown told Mashable. She already had inventory en route from China well before Trump announced the tariffs in April, and, by then, it was too late to pull her product. Now, she says, "We have a bunch of Keepsake Cases and our new bedding line headed to the U.S." That means that even though she purchased them before the tariff went into effect, Brown will now have to pay the tariff on those items.

Even worse, her remaining inventory is stuck in China because she can't afford to pay the tariff on those goods. She refuses to increase prices, wanting to keep her goods accessible, but that leaves her stuck in what she calls a “weird stalemate.”

Some of the comments on her TikTok have suggested she simply move production to the U.S., but that’s easier said than done. According to Brown, U.S. manufacturers can’t replicate the same quality, and charge significantly more when they come close. She argues that the materials and factories she needs simply aren't available in the U.S., and it would take far longer to begin producing her products. "Honestly, making it in the U.S. is actually more expensive than what the tariffs would be," Brown said. For now, she's just hoping the tariffs decrease because they're "essentially destroying small businesses like mine."

And that's just small businesses that handle product sales themselves. Brown doesn't use TikTok Shop or any third-party seller, but for those who do, there's another looming change: The "de minimis" exemption, which allows packages worth less than $800 to enter the U.S. tax-free, will no longer apply to Chinese shipments starting May 2. That means sellers using platforms like TikTok Shop, Temu, or Shein will face a 120-percent tariff on items, with a $100 “postal item” charge increasing to $200 by June 1.

"Many influencers aren’t just promoting products; they are the small businesses, often relying on affordable overseas manufacturing to run lean [direct-to-consumer] brands," Captiv8 Co-Founder and CEO Krishna Subramanian told Mashable. "If tariffs drive up costs, some creators may need to rethink pricing or product strategy." But it's not all gloom and doom. "Creators are uniquely agile," she said. "They’ve built loyal communities, and that direct connection gives them room to adapt faster than traditional retailers."

Some are already adapting by turning the economic fallout into content. Brown’s videos about how tariffs have impacted the financial side of her business have garnered hundreds of thousands of views and a wave of support. Most of the comments are full of empathy and encouragement — many even promise to start buying from Curio Blvd. right away.

"Your video just got you a new customer 🫶🏽 wishing you all the best," one commenter said.

Gartner Director Analyst Claudia Ratterman told Mashable that there's an opportunity for brands and creators to create content "really [highlighting] the value they bring" to connect with their audience during economic uncertainty.

"That kind of message not only grabs [people's ] attention but also makes [them] feel valued and understood. It's a win-win because it boosts engagement in the short term and over time, you’re hopefully nurturing a potential loyal customer," Ratterman said

How tariffs might affect brand deals 

When tariffs are put in place, brands have to either spend more money on their goods or move the production of them, which also costs money. Because of this, we might see brands having to shift their budgets. Usually, when that happens, they'll cut spending in places like marketing and public relations and instead focus on something that might be cheaper — something like influencer marketing.

We've seen these kinds of shifts before. In 2020, there were some short-term economic shocks to the supply chain because of the COVID-19 pandemic. In response, brands shifted their budgets to influencer marketing because it was a cheaper and more effective alternative to traditional ads. Of course, the pandemic isn't a perfect one-to-one parallel — people were stuck in their homes and scrolling with more fervor than ever before. But the spike in prices for many goods made consumers more cautious with their spending, and marketers had to rethink how to win them over.

Instead of taking out loans — an option many companies could pursue — some brands may choose to cut marketing budgets to prioritize production. If they want to market at all, they'll need to spend less, shifting away from costly tactics like TV ads in favor of user-generated content (UGC) and influencer partnerships.

Now, with tariffs driving up costs across multiple levels of business, we may see a similar adjustment. Businesses that can survive these tariffs will need to stay relevant, and one of the best ways to do so is to remain on consumers' For You Pages.

Subramanian told Mashable that rising costs "could trigger a shift in advertising strategy" and cause brands to move dollars towards lower-cost, high-ROI influencer marketing. "Creators offer flexible, authentic ways to engage consumers," Subramanian said, adding that "we’re already seeing brands double down on creator-led content that drives both trust and purchase intent." 

But it might be important that influencers shift the way they're showing up, too. Layla Revis, the vice president of social, content, and brand at Sprout Social, a social media management tool, told Mashable that empathy and transparency are more important than ever. With tariffs driving up the cost of everyday goods — and putting financial pressure on consumers — brands need to show they understand what people are going through. That’s where influencers play a crucial role.

"Influencers are trusted advocates, they have access to niche communities and they’re on the front lines of the consumer experience," Revis said, adding that the majority of people who shop from influencers are more likely to provide product feedback with an influencer over a brand. "For this reason, influencer marketing not only has an impressive ROI, on average $5.78 for every $1 invested, but it is key for developing long-lasting consumer trust and relevance — two factors brands must have in their strategies right now."

That's a lot to take in, but, ultimately, Revis said, "because of this effectiveness, I suspect we will see brands lean into influencer partnerships during this time."

"With so much skepticism these days, it's more important than ever for brands to leverage influencers and [user-generated content], because people connect with people," Ratterman told Mashable. "However, it must be the right influencer — someone who people genuinely trust — before their recommendation can truly influence buying decisions."

Will tariffs have any effect on content creators who are strictly entertainers?

Pure entertainers in the content creator space likely won't see the effects of the tariffs apart from the general malaise of living within a state of economic turmoil. Ratterman said this time opens up the ability for creators to offer a "fun escape" or dig into the reality of our times and give practical tips. But those creators will still reap the same monetary benefits from things like the Creator Fund that they always have — tariffs aren't going to stop users from watching TikTok videos.

"Overall, while tariffs introduce some short-term complexity, they also reinforce the long-term value of the influencer ecosystem," Subramanian said. "It’s decentralized, adaptive, and built on real human connection, which is exactly what brands need when market conditions are in flux."

Keep checking Mashable for our latest tariff news and explainers, from delayed Nintendo Switch 2 preorders to reports of iPhone 16 panic buying.