It’s Monday!
Threads hit 320M monthly active users, adding 20M in the past six weeks as Meta aims for 1B users. Growth is accelerating, fueled by X's struggles and steady crossposting from Facebook and Instagram. At this rate, Threads could overtake X by year-end.
Fashion and beauty brands brace for Trump’s tariff shake-up
New tariffs on China, Mexico, and Canada are set to upend supply chains, drive up costs, and shut down the de minimis loophole that brands like Shein and Temu have relied on. With more trade actions on the horizon, fashion and beauty companies are scrambling to stay ahead.

The new reality
Starting February 4, a 25% tariff hits imports from Mexico and Canada, and a 10% duty targets Chinese goods—including apparel, footwear, and beauty products. Even bigger? The end of the de minimis rule, which allowed packages under $800 to enter the U.S. duty-free. That loophole fueled ultra-cheap, direct-to-consumer shipping for Shein, Temu, and even Amazon’s Haul section. Now, those shipments will face the same tariffs as bulk imports.
What brands are doing
Rethinking supply chains: Larger brands are securing factories in the U.S. and Mexico, while smaller ones struggle to find domestic production at competitive costs.
Tariff engineering: Expect design tweaks—like subtle fabric swaps—to sidestep higher duty rates.
AI-powered inventory moves: Companies are using AI to forecast demand, reduce waste, and maintain profitability despite rising costs.
‘Trump majeure’ clauses: Some brands are adding tariff-related clauses to contracts to avoid sudden financial hits.
The bigger picture
With Trump signaling more tariffs—on everything from semiconductors to pharmaceuticals—brands must brace for ongoing disruption. Former Treasury Secretary Lawrence Summers warns that higher input costs could kill jobs in key manufacturing regions. Meanwhile, trade experts predict additional tariffs designed to reshape global supply chains and U.S. trade deficits.
For brands, this isn’t just about surviving the latest round of duties—it’s about long-term strategy. Those that adapt fast, diversify suppliers, and rethink pricing will have the upper hand in an increasingly volatile global market.
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Citi Pay’s big bet on BNPL—and why it thinks it can win
Citi is making a play for buy now, pay later (BNPL) dominance, betting its trusted brand and lending expertise will give it an edge over fintech rivals.

The strategy: Launched in 2023, Citi Pay now offers installment loans at 195 merchants, including LG and Pods. The service is growing 20% month-over-month, with installment plans ranging from $500 to $20,000 over 6 to 60 months at 0% to 12.99% interest. Unlike fintech BNPL players, Citi is leveraging its long-standing relationships with merchants and positioning itself as the safer, more familiar choice for consumers. Research showed shoppers gravitate toward Citi’s branding over other BNPL providers.
Why it matters
BNPL is booming: 21.2% of U.S. shoppers use BNPL, up from 17.6% in 2021, with $18.2B spent through BNPL last holiday season.
The risk factor: Nearly two-thirds of BNPL users have subprime credit scores, raising concerns about debt dependency.
Citi’s advantage: Unlike fintech BNPL providers, Citi doesn’t sell customer data and can assess financial risk more accurately using its banking data.
The bigger trend: As consumers demand personalized payment options, retailers are prioritizing seamless checkout experiences—but too many BNPL options can overwhelm shoppers. Citi’s model keeps things simple while offering transparency on monthly payments, making it appealing for big-ticket or unexpected purchases.
What’s next? With legacy banks stepping in, the BNPL space is shifting. Citi Pay’s challenge? Competing with fintech giants like Affirm and Klarna—while convincing shoppers that a bank-backed BNPL is just as flexible, but more reliable.
Google’s AI shopping assistant & ad targeting tweaks
Google is testing an AI-powered shopping assistant in Search, recommending products based on user queries and pulling details from retailer sites. Brands should prepare by tightening product descriptions and optimizing for AI-driven search visibility.
Meanwhile, Google Ads now allows demographic exclusions in Shopping inventory for Performance Max campaigns, letting brands control which age groups see their ads. Reporting details are still unclear, but this could be a game-changer for audience targeting.
Today’s top stories
Amazon is rolling out AI-powered TV ads, giving brands more targeting precision for streaming audiences.
Consumers are willing to pay more for products featured in diverse ads, according to a Kellogg School of Management study.
Elon Musk is suing major advertisers over their X boycotts, escalating tensions between brands and the platform.
Wedding essentials were a top-selling category on Shopify in January, signaling a strong start to wedding season spending.
New Super Bowl advertisers are stepping into the spotlight, battling for attention in a high-stakes ad landscape.