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Potential reductions in US social ad spending, per our ad forecast鈥攖ied to broader trade tensions and reduced Chinese advertiser activity鈥攃ould hurt platforms that rely heavily on domestic spend. Pinterest鈥檚 international momentum provides a helpful counterbalance.

President Donald Trump鈥檚 shifting stance on tariffs has created a volatile environment for both consumers and retailers. With some Chinese goods facing tariffs as high as 245% and a blanket 10% on most imports, the market is seeing rapid shifts in consumer behavior, supply chains, and strategic planning.

Apple was hit the hardest due to its manufacturing plants in China, India, and Vietnam: Its shares plunged 9.2% in the day after the announcement. Amazon and Meta followed close behind, each with 9% declines, while Nvidia鈥檚 shares fell 7.8%. Alphabet and Tesla saw more modest losses of 3.9% and 5.5%, respectively.

The US鈥� second-biggest ad market rallied in 2023 thanks to ad buyers in China and investments in automation paying off.

As the major economies of Western Europe and Latin America grow their B2B ad spending more quickly, China鈥檚 share of the worldwide total will decline. Click here to view our full forecasts for US B2B digital ad spending and China B2B digital ad spending. Outside of the US and China, the UK is the largest B2B digital advertising market.

TikTok鈥檚 return to US app stores drove a 91% decline in downloads for RedNote, the rival Chinese social app that became the most downloaded free app on US app stores last month. RedNote is struggling to retain users despite maintaining a 25% higher daily active user count than before TikTok鈥檚 removal.

Tariffs on Chinese goods could hurt Google, Meta: Chinese retailers Temu and Shein are two of the companies鈥� top ad spenders.

The UK is still playing catch up with China and the US. At 拢7.3 billion ($9.1 billion), UK social commerce sales will account for around 4.1% of UK ecommerce sales in 2024. In the US, social commerce will have a 6.0% share of total retail ecommerce in 2024, while in China, it will have a 29.3% share.

Chinese retailers may cut ad spending under new tariffs: US tariff crackdown could impact Temu and Shein's ad investments, reshaping the digital ad market.

Our take: The irony of ByteDance鈥檚 TikTok users flocking to Chinese-owned alternatives, including Lemon8, indicates they鈥檙e not concerned about an app鈥檚 perceived ties to Beijing or national security鈥攖wo key arguments driving the US government鈥檚 push for a TikTok ban.