Fashion Brands Cut Influencer Marketing Due to Tariffs

The latest round of US tariffs is shaking up the fashion industry, with influencer marketing now caught in the crossfire. Popular brands Shein and Halara have reportedly put some influencer campaigns on hold, citing the business impact of new tariffs imposed by President Donald Trump. These moves highlight the growing ripple effect of trade policies on the digital creator economy.

Why Are Fashion Brands Pulling Back?

Halara, a fast-growing activewear brand, informed talent managers that it would pause sponsorship campaigns until March. The reason? A shift in warehouse strategy to navigate the new tariff landscape. Shein, the giant fast-fashion retailer, similarly told agencies that it was deferring new campaign offers, specifically for influencers targeting US audiences.

The timing aligns with Trump’s February 1 executive order, which includes:

• A 10% tariff on all Chinese goods
• A 25% tariff on products from Canada and Mexico (though these are temporarily on hold)
• The removal of the de minimis exemption, a tax loophole that previously allowed brands like Shein and Temu to ship goods cheaply from China to US consumers (though this removal has been delayed for now)

With these tariffs in place, brands reliant on Chinese manufacturing are facing rising costs. Instead of absorbing the increased expenses, some are choosing to cut budgets elsewhere—including influencer marketing.

A Blow to the Influencer Economy

Influencer marketing has been a key growth driver for brands like Halara and Shein. Halara, founded in 2020, has built much of its business through TikTok, selling over 125,000 items on the platform’s e-commerce feature. Shein has long been known for its influencer sponsorships, including paid trips and commission-based affiliate programs. A pause in these activities could signal a slowdown in their aggressive digital marketing strategies.

While it’s unclear whether these pauses will affect all influencer partnerships, the concern is clear: higher costs could lead to scaled-back marketing budgets.

The Broader Impact on E-Commerce and Manufacturing

The effects of these tariffs extend beyond influencer sponsorships. Brands that manufacture in China, such as Beyond Lost, a streetwear line created by influencer Alyssa McKay, are bracing for potential supply chain disruptions.

Brian Nelson, co-founder of The Network Effect agency (which works with Beyond Lost), voiced concerns over shipping costs and logistical uncertainties. A shipment currently en route to the US faces unknown fees due to tariff adjustments. The agency is exploring diversification in manufacturing to offset potential long-term impacts.

For brands selling to Canada, the uncertainty continues. Though tariffs on Canadian imports are paused, businesses are watching closely, knowing that policy shifts could happen at any time.

What’s Next for Fashion and Influencers?

While some brands are pulling back, others may adapt in different ways—either by increasing product prices, shifting supply chains, or reallocating budgets to different marketing channels. The full impact of these tariff changes remains to be seen, but one thing is clear: the influencer economy is not immune to global trade policies.

As the situation evolves, brands, influencers, and agencies must stay agile, watching market shifts and government policies closely. In an industry where speed and adaptability are key, those who can navigate these challenges effectively will come out ahead.