The news: The tariff-led market crash that’s hammering Apple, Nvidia, Meta, and more could provide opportunities for smaller players while driving down ad spending.

• Poshmark and ThredUp may benefit from rising merchant prices on TikTok Shop and Amazon, where many third-party sellers get their items from China.
• Hubs for online ad spending—including Facebook, Pinterest, and TikTok—could see revenues decline if international companies like Temu and Shein reduce their budgets.

Internal inventory: Some smaller retail businesses or manufacturers that rely on goods from China, Vietnam, or Taiwan may struggle to pivot production to the US. On the flip side, local artisans that source materials from within the US and companies that buy used inventory may be better off.

TJX-owned TJ Maxx and Marshalls, which buy surplus inventory from other companies, could benefit from companies that raced to bring in international products before tariffs kick off. Only a “small, undisclosed percentage” of TJX’s merchandise comes from overseas, per CNN.

Switch to services: Social media platforms will likely deal with a different kind of fallout from tariffs and the impending death of the de minimis exemption—an ad spending drop.

• That could force Meta, Pinterest, and others to diversify their business models and double down on services and subscriptions.
• This pivot could help offset ad losses, but offerings will need to be affordable for price-sensitive customers.

A better solution would be scaling back on other ventures, such as Meta’s losing Reality Labs division and undersea cable plans.

Our take: Brands should optimize local supply chains and explore service-based models when applicable to maintain profitability amid tariff disruptions. Meanwhile, consumers can turn to platforms that sell US-based inventory to manage price hikes.

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