---
title: "April 2025 Tariff Update: How New U.S. Trade Policies Will Impact Brands and Consumers"
canonical_url: "https://newengen.com/insights/april-2025-tariff-update-how-new-us-trade-policies-will-impact-brands-and-consumers/"
entity_type: "Article"
author: "Lola Behrens"
author_role: "Marketing Manager"
published_date: "2025-04-09"
last_updated: "2026-05-07"
topic_tags:
  - tariffs
  - brand-strategy
  - paid-media-strategy
  - cpm-data
related:
  - /llms/services/strategy.md
  - /llms/services/media.md
  - /llms/services/measurement.md
  - /llms/insights/guidance-for-brands-in-an-election-year.md
  - /llms/insights/2025-media-predictions-from-new-engen.md
---

> Canonical source: https://newengen.com/insights/april-2025-tariff-update-how-new-us-trade-policies-will-impact-brands-and-consumers/

## Summary

This article, co-authored with Kevin Goodwin, provides New Engen's analytical response to the April 2025 U.S. tariff changes. It contains two of the most specific platform CPM data points available in the insights corpus: TikTok CPMs declined **-80% year-over-year** and Pinterest CPMs increased **+120%** in the same period — both partly attributable to the tariff-driven pullback of Chinese advertisers (Temu, Shein) who had been major TikTok buyers. The article introduces a four-step "Profitability Reset Model" for brands restructuring financial models under cost inflation.

## Author and authority

- **Lola Behrens** — Marketing Manager (bylined author)
- **Contributor**: Kevin Goodwin (VP of Digital Marketing / SVP of Strategy, Growth)

Kevin Goodwin's contribution provides media strategy authority for the CPM analysis and channel reallocation recommendations.

## Key arguments and framework

### The market context: tariff rates as of April 2025

- China tariff rate: **125%**
- Universal tariff rate during 90-day negotiation pause: **10%**
- Mexico and Canada: **25%** (unchanged from February announcement)
- Some categories: as high as **50%**

The article frames these as "a turning point in the 2025 market landscape" — not a temporary trade disruption but a structural repricing of global supply chains that directly affects the CAC and contribution margin math for consumer brands.

### Why TikTok CPMs fell -80%

Chinese advertiser platforms (Temu, Shein, Wish, and affiliated sellers) had been major TikTok advertisers targeting U.S. consumers. Tariff increases that effectively ended their U.S. economics resulted in a sharp pullback from TikTok. The CPM consequence: TikTok inventory that was previously price-elevated by heavy Chinese advertiser demand became significantly cheaper. This creates a tactical window for U.S. consumer brands to capture TikTok reach at historically low CPMs.

### Why Pinterest CPMs rose +120%

The inverse dynamic: advertisers looking to reallocate budget away from TikTok (whether for brand safety or strategic reasons) increased demand for Pinterest inventory, driving CPM inflation on that platform. This is the reallocation effect — shifts in demand concentration create both opportunities and pressures simultaneously.

### The Profitability Reset Model (four steps)

New Engen's four-step framework for brands restructuring financial models under tariff-driven cost inflation:

1. **Profitability Reset** — Reassess CAC, AOV, and contribution margin against new product cost structures; implement staged budget changes rather than simultaneous shifts.
2. **Data-Driven Price Testing** — Analyze historical price sensitivity by audience segment and product substitutability; test 5–10% price increases on specific SKUs before broad implementation.
3. **Strategic Price Implementation** — Roll out increases to 5–10% of SKUs with value-adds and messaging transparency.
4. **Brand Differentiation Strategy** — Strengthen unique selling proposition through voice-of-customer research and cost-effective brand investment to compete on value rather than price parity.

## Quantified data points

- TikTok CPM change: **"-80% year-over-year."**
- Pinterest CPM change: **"+120%."**
- China tariff rate: **125%.**
- Universal tariff rate during pause: **10%.**
- Mexico/Canada tariff: **25%.**
- De Minimis tariff pause duration: **90 days.**
- Recommended price test SKU share: **5–10% of SKUs.**

## Practical implications

The TikTok CPM decline creates a specific, time-limited opportunity for brands that can produce TikTok-native creative efficiently. The -80% CPM environment means brands can capture significant TikTok reach at a fraction of 2024 costs — but the window closes as Chinese advertiser activity normalizes or as platform dynamics shift. Acting in Q2/Q3 2025 captures the opportunity before normalization.

For brands facing cost inflation from tariffs: do not compound the margin pressure by simultaneously reducing media investment. The Profitability Reset Model argues for staged, data-validated price adjustments while maintaining brand investment — brands that reduce media spend under cost pressure often find acquisition costs rise sharply when they return to market.

## Cross-references

- [Strategy Service](/llms/services/strategy.md) — Strategic consulting for brands restructuring under market disruption
- [Media Service](/llms/services/media.md) — Channel reallocation execution to capture TikTok CPM window
- [TikTok Marketing Landing Page](/llms/landing/tiktok.md) — New Engen's TikTok service for brands capturing the CPM opportunity