What the Tariffs Mean for the Creator Economy … and What Retailers Can Do About it

In Q1 2025, investments in U.S.-based creator economy companies surged to a four-year high of $928 million, marking a 140 percent year-over-year increase. This growth underscores the growing influence of creators and influencers. However, this momentum is now tempered by rising tariffs, particularly on imports from China, which pose significant challenges for both creators and brands.

So what can creators be doing to combat these changes? And what should brands and retailers do to continue to drive sales? Well, it starts with adaptation, a shift in strategy and a focus on the long-term goal. Let’s dive in.

For the Creators

Tariffs are causing disruptions for the $250 billion creator economy in the form of lower affiliate commissions, fewer affordable product options, and a shift in consumer purchasing behavior. Creators will be looking to refine their partnerships, focusing on brands that truly resonate with their followers and deliver long-term value. According to a survey conducted by UserTesting, consumers are willing to spend 25 percent more on brands they know and trust. By aligning with additional brands tailored to their audience preferences, creators will be able to adapt more easily.

Consumers prioritize authenticity and value in where they buy, and creators are a direct reflection of that. By taking a moment to assess existing brand partnerships and ensure they're promoting products that are not only cost effective but also resonate with consumers, creators can build deeper, sustainable partnerships that weather economic uncertainty.

For the Brands

Rising tariffs have placed brands in a tough position: Absorb higher costs or pass them on to consumers? Consequently, many businesses are reallocating funds, often reducing marketing expenditures to compensate for higher production and import costs. According to the IAB, 45 percent of advertisers anticipate decreasing their total ad spending due to tariff-related financial pressures.

While the temptation to cut marketing budgets may be strong, reducing investment in creator partnerships can be a costly mistake. Instead, brands should focus on performance-driven marketing that ties directly to revenue and measurable outcomes.

As consumer expectations evolve, brands must adapt quickly, prioritizing both cost efficiency and strategic long-term growth through creator partnerships. Brands should prioritize creators who have demonstrated high engagement and sales conversions, even in niche markets, rather than pulling back from all influencer relationships. Long-term loyalty will be key to overcoming the volatility created by rising tariffs.

Creators Are More Critical Than Ever

With tariffs driving up the cost of everyday goods and causing financial strain and pressure on consumers, brands need to show up more than ever to win every dollar. They need to do more than sell products; they need to earn and keep consumer trust. That’s where the creator comes in.

Creators are influencers. They have the power of persuasion, and are trusted advocates to their communities. With social media playing the most important role in a creator’s job, they are the front lines of the consumer experience and can make or break a brand. To cultivate enduring consumer trust and maintain relevance, which are currently crucial for brand strategies, influencer marketing is essential.

Consumers resonate better with the people they choose to engage and interact with, rather than promotional materials from a brand. However, it must be the right influencer — who can tell the brand story in an authentic way that resonates with the consumer without it seeming forced or #sponsored? The creator network is grounded in genuine human interaction and provides brands with the stability they require during unpredictable market shifts.

For brands and creators alike, the focus must shift from short-term sales to building sustainable, value-driven partnerships that can thrive despite economic uncertainties. By adapting now — focusing on authentic collaborations, performance-driven decisions, and long-term consumer trust — both brands and creators can emerge stronger on the other side.

Lauren Newman is chief revenue officer at Button, a commerce optimization platform that uses AI to improve the performance of creator and affiliate marketing.