Trump prices could hardly reach Meta, Amazon and other advertising companies

Amazon and Meta could be the major losers of the new prices of President Donald Trump, analysts and initiates in the advertising sector.

Trump announced a 10% reference rate on products from all countries outside the United States, but the tax is higher for some. These include China, which effectively faces a rate of 54%. Technological actions have greatly dropped to the news.

Amazon and Meta receive a lot of business from Chinese advertisers who are trying to reach American buyers, and they could interrupt advertising or lose business.

“The retail media and the digital media will be considerably affected by these prices, especially because the products shipped from China and Vietnam are significant for Meta and Amazon,” wrote Brian Wieser, a veteran advertising analyst, in a note.

Eric Haggstrom, director of market intelligence at Advertiser Perceptions, said the most immediate impact would be on fast filming products such as clothing and home products.

“The biggest losers that you will see are currently based on Chinese advertising: social media and retail media,” he said.

Advertising analysts have pointed out that prices would affect all product categories and the announcement seller due to the worldwide nature of numerous supply chains. Apple, in particular, will probably be hardly affected because China is its largest manufacturing center. But the situation is so fluid that it is impossible to predict with certainty at this stage.

“There is no sector that is not affected by it,” said Wieser.

Others have argued that Amazon, Meta and search for Google focused on the announcement would be resistant because of their scale, their measurability and their ability to generate results.

“The retail media will continue to win,” said Nadja Bellan-White, CEO of M&C North America, adding that the expectations of advertisers in performance guarantees will be greater than ever. “They want to know if they spend x amount, they will get x result.”

Newstreet research analysts wrote that Pinterest, Reddit and Snap would be the most challenged from the advertising point of view because they have smaller user bases than Meta. Reddit, for example, has solid user communities but a specific atmosphere that takes additional work for an advertiser. Large advertisers could withdraw on the platforms they know the most.

The upheaval of the prices occurs while the advertising industry is preparing for its greatest showcase of the year, television upwards, when the television giants try to lock large pieces of advertising inventory.

“Advertisers will always want to lock the dollars when they have to broadcast announcements related to product launches,” said Haggstrom. “Advertisers want to ensure that they are able to place their advertisement at the right time. But these negotiations could take more time due to the entire economic and tax situation. It is a fairly major shock.”

Live Sports drives a large part of the television market because of its reliable and member general, which could benefit players like Disney and Nbcuniversal.

Sport is the waiting word for advertisers when they are worried about the political counterpoup, said the longtime player for the advertising industry Michael Kassan.

“This is the safest place,” he said.

Another point of view is that advertisers could hesitate to lock themselves in Big TV Buy and could move expenses to digital chains that are still available.

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How Disney, Netflix and WBD could be affected

As for other media and entertainment companies, the economic weakness that results from prices could affect those that count on consumption spending, Morningstar analysts wrote. Most of these companies also earn money from advertising and could see a slowdown.

The actions of the media and entertainment have made the price on the new prices.

Disney parks and experiences generate most of its profits, and a recession would probably depress tourism and reduce the attendance of this business. Disney streaming activities could compensate for the weakness of his experiences, however, wrote Morningstar analysts.

Warner Bros. Discovery also had a recent streaming success that could provide a stamp, but it still has a big debt burden that could make it vulnerable if the credit markets are tightening, analysts wrote.

Netflix does not have the Disney type ditch of experiences to protect it, but it has a service that has reached utility level status. This makes subscribers unlikely to cancel en masse, analysts from Morningstar wrote.

Bernstein analysts, however, wrote that Netflix’s growth abroad could slow down if Europe imposes reprisals. Netflix is ​​the best streaming video service on the five largest European markets.

The company that remains the biggest joker: Tiktok.

Some advertisers adopt its ability to generate results, thanks to the measures taken to facilitate the management and measurement of marketing advertising campaigns, wrote more easily. However, other advertisers continue to hold back due to its prohibition or sale potential. Adding to the obstruction, his future could be linked to the prices, Trump suggesting that he could try to use them as a negotiation currency to bring China to allow a sale of the application.