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Creators Navigating Tariffs

Creators Navigating Tariffs

April 24, 2025

How I Think Tariffs Will Impact The Creator Economy

I’ve been getting a lot of questions from all of you about how tariffs will affect the creator economy, so I thought it’d be a good idea to share my thoughts on the matter. Consumer brands are starting to feel the pain; the cost of goods is going up, and in times of uncertainty like this, creators are always going to feel the effects. Consumers are also starting to worry about their spending. None of us believe the tariffs will stick around for long — but for now, we have to deal with them.

Here are my thoughts…

How Will Merch Sales Be Impacted?

This was the first thing on my mind when the tariffs were announced — knowing that most of the apparel companies in the space source out of China. And it’s not just soft goods; we also have creator toys, figurines, and plushes. For reference, 80% of the toys imported into the U.S. come from China. That’s obviously going to be the area most affected given the tariff situation.

I wouldn’t be surprised to see some of those costs passed on to the end consumer — with direct-to-consumer merch getting more expensive — or for creators to pause their merch stores, sell through the inventory already in U.S. distribution centers, and wait for the tariffs to lift before restocking.

If you’re a creator, you do have some options. Not all merch companies source from China, and many have the ability to pivot to countries like Vietnam or Malaysia.

Creator-Led Businesses Will Feel The Effects

2025 is yet again going to be a very big year for creator-led consumer products. Last year, we saw a wave of new businesses — from lawn care to energy drinks to gummies — launching both D2C and in retail. Almost all of these companies are sourcing outside of the United States. China is the world’s largest producer of plastic products, and materials like containers, resin molds, labels, and aluminum — all commonly used in product packaging — are frequently sourced from there.

Hopefully, you’ve got a solid supply chain person who’s already preparing for this and meeting with alternative co-packers. If not, it might be worth bringing in a consultant. Right now I would only really do this if you’re sourcing from China.

Ad Revenue and Sponsorship Dips

Advertising budgets are one of the areas hit hardest during times of economic uncertainty. I’d anticipate, given the trade wars, that advertisers will start to spend significantly less on YouTube. Even if your channel is growing, you may start seeing lower RPMs and payouts on your content. I would expect the same thing to happen with brand partnerships as well. We’ve been seeing a pullback in consumer brand spending given the uncertainty — even Nintendo didn’t know how to price the Switch 2.

Go watch this video from Mrwhosetheboss.

We’ve seen this happen before. Most people shouldn’t make a fundamental shift in content, niche, or style just because their AdSense is going down. This is about weathering the storm. I have a long-term outlook on YouTube and advertising spend increasing over the next 10 years. Stay the course — your RPM will rebound.

General Economic Uncertainty

It’s more important than ever to listen to your communities and recognize that tariffs are affecting all of us in one way or another. Your community may have less to spend, so be mindful of the content you’re putting out. You shouldn’t be flexing your big house or expensive car, people are struggling right now.

The Big Takeaway…

Tariffs are here, and the creator economy won’t go unaffected. Ad revenue, creator-led consumer product businesses, and merch are all areas I expect to be impacted by the current economic uncertainty. Building a strong community has never been more important than it is right now. But we’ve been through this kind of uncertainty before — and it won’t last forever.