Tariff hikes will raise beauty product prices

The beauty industry in the U.S. is facing challenges as new tariffs are set to be introduced on April 2. These tariffs follow a period of inflation and supply disruptions caused by the COVID-19 pandemic. The tariffs will impact prices on imported goods, including beauty products. In 2023, the U.S. beauty industry imported $6.58 billion worth of products and exported $6.86 billion. Despite a nearly equal amount of imports and exports, only 7% of beauty products sold in the U.S. are made domestically. Many beauty items rely on materials imported from countries like China, where significant tariffs already apply. President Trump’s tariffs currently include a 20% tax on all Chinese goods, which affects packaging materials used in beauty products. The U.S. is the largest importer of plastic products, with Canada and Mexico also being key suppliers. However, costs from these countries are expected to increase due to new tariffs. Efforts to move manufacturing back to the U.S. are complicated by higher labor costs. In addition, some ingredients critical to beauty products can only be sourced from specific regions. Disruptions in the supply chain have already raised hair care prices by 27% since 2019. Consumers are responding by choosing more affordable beauty options, delaying appointments, or skipping services. The uncertainty around tariffs is likely to drive prices even higher, making it difficult for both salons and customers. Many Americans may need to adjust their spending on beauty essentials amid these changes.