TikTok Ban, Supply Chain Woes, and Retail Trends

Originally published January 17, 2025. This version was rebuilt from the Supreme Court's TikTok opinion, the Census Bureau's retail report, the Defense Department's 1260H list and J.B. Hunt's results for the FIN archive, and the facts are as of that date.

Mid-January 2025 brought a court ruling that could upend social media marketing, strong holiday numbers for furniture stores and new risks for shipping.

The short version

• The Supreme Court held the TikTok law does not violate the First Amendment.
• Census said furniture store sales rose 2.3% in December and 8.4% from a year earlier.
• The Defense Department listed COSCO SHIPPING as a Chinese military company.

TikTok ruling

On January 17 the Supreme Court ruled that the law requiring TikTok's sale or shutdown does not violate petitioners' First Amendment rights and affirmed the appeals court. The ban was set to take effect January 19.

Many furniture retailers and brands had built audiences on TikTok with room tours and product videos. The ruling pushed marketers to spread spending across other platforms.

Update. On January 20 an executive order told the Attorney General not to enforce the law for 75 days.

Furniture finishes strong

The Census Bureau's advance report showed furniture and home furnishings store sales up 2.3% in December from November and up 8.4% from a year earlier. Total retail and food services sales rose 0.4% for the month and 3.9% for the year.

December was a strong close to a difficult 2024, helped by holiday promotions and an easy comparison with the year before.

Shipping and freight risks

On January 7 the Defense Department's 1260H list named China COSCO SHIPPING Corporation and COSCO SHIPPING (North America) among Chinese military companies operating in the U.S. The listing raised questions for importers that book space with the carrier.

J.B. Hunt reported fourth-quarter revenue of $3.15 billion, down 5%. Final Mile Services revenue fell 6% to $228 million, which the company blamed on general weakness in demand across its end markets.

Key takeaway

Furniture stores finished 2024 well, but marketing channels, shipping partners and home delivery demand all carried new uncertainty into 2025.

Related on FIN

• Furniture Store Sales Fell 2.7%. Every Other Category Grew.
• The Freight Mafia's New Playbook

Sources

• Supreme Court of the United States, TikTok Inc. v. Garland, opinion (Jan. 17, 2025)
• The White House, Executive Order on TikTok (Jan. 20, 2025)
• U.S. Census Bureau, Advance monthly retail sales, December 2024
• U.S. Department of Defense, Entities identified as Chinese military companies (Jan. 7, 2025)
• J.B. Hunt Transport Services, Fourth quarter 2024 earnings release