1. TikTok Ban Momentum Resumes
Trump’s renewed focus on national security and China has put TikTok back in the crosshairs. Once again, a federal ban is under discussion four months after the popular social media site got a reprieve when Trump took office. In April, Trump extended the sell-by date by another 75 days, but advertisers hate uncertainty. They are already pulling back on their spending.
Bottom line: If your brand leans on TikTok, which had been hot, it’s time to diversify your social media spending now — YouTube Shorts, Reels, and emerging platforms like BeReal or Lemon8 are worth testing.
2. Tariffs Driving Up Cost of Goods — and Ad Budgets
New tariffs on Chinese imports and threats of tariffs on Mexico have already begun raising costs of consumer goods. Retailers are understandably panicky and eager to show consumers why prices are going up, up, up. For example, Amazon is reportedly instituting a new listing at checkout of how much items’ prices are impacted by tariffs, a move the White House labeled “hostile” even though it’s protecting the brand.
Bottom line: For brands, this means tighter margins — and reduced flexibility in media budgets. Expect a pivot toward performance channels with stronger short-term ROI, like Meta and TikTok.
3. Big Tech Regulation and Section 230 Back in the Spotlight
The Communications Decency Act of 1996 was basically an effort to regulate porn on the internet (if we only knew then what we know now, eh?). But the act also had the dual purpose of protecting Americans’ online freedom of expression, with Section 230 offering online platforms immunity from civil liability. As you might imagine, this doesn’t sit well with the Trump administration.
With officials indicating interest in revisiting Section 230 and pursuing new regulations on social platforms, we expect disruptions in how Meta, Google and Amazon manage content.
Bottom line: This could impact ad inventory. A policy change may affect what’s allowed, what’s prioritized, and how brand messages are distributed.
