A closer look at the international makeup and skincare products that are imported to the U.S., and the potential impact of tariffs on the beauty industry. Beauty lovers and skincare enthusiasts, get ready for sticker shock as international beauty brands may become pricier due to the recent imposition of tariffs on goods from South Korea, France, Canada, and Italy. The top five countries that supplied beauty and skincare products to the U.S. in 2024 were South Korea, France, Canada, Italy, and China. As a result, tariffs may increase the cost of lip and eye products, powder makeup, foundation, concealers, blush, sunscreen, moisturizers, and facial toners, among others. According to Michael Sacco, managing director and national consumer and industrial products leader at tax and business advisory firm CBIZ, the beauty industry operates with a long supply chain cycle, which means that increased prices will likely be felt next year.
Global Ingredient Sourcing
Ingredients and packaging for beauty and skincare products can come from anywhere in the world. Sacco explained that many brands source key ingredients like botanical extracts, emulsifiers, and preservatives from countries like South Korea, France, and China. These international ingredients can drive up costs for products made in the U.S., even if the brand itself is domestic.
| Country | Key Ingredients | Source of Ingredients |
|---|---|---|
| South Korea | Botanical extracts, emulsifiers, preservatives | Global suppliers |
| France | Botanical extracts, emulsifiers, preservatives | Global suppliers |
| China | Botanical extracts, emulsifiers, preservatives | Global suppliers |
Tariffs can vary depending on the country, and the Trump administration’s tariff policies have created complex trade relationships.
Tariff Implications
The top five countries that supply beauty and skincare products to the U.S. are subject to varying tariffs, which can impact the cost of imported goods.
- South Korea:** 10% tariff (possibly increasing to 25% if no deal is reached)
- France:** 10% tariff (possibly increasing to 20% if the European Union and the U.S. government reach a trade agreement)
- Canada:** 25% tariff on Canada and Mexico (exempted for U.S.-Canada and U.S.-Mexico trade agreements)
- Italy:** 10% tariff
- China:** 145% tariff (includes 25% tariff on China, plus additional tariffs on specific products)
The beauty industry operates with a long supply chain cycle, which means that increased prices will likely be felt next year.
Country-Specific Tariff Implications
- South Korea: Social media-viral K-Beauty brands like Laneige, Cosrx, and Peach & Lily may see increased prices under the 10% tariff, potentially rising to 25% if no deal is reached.
- France: French skincare products, such as those from La Roche-Posay, Caudalie, and Avene, may be affected by a 20% tariff if a trade agreement is reached.
- Canada: Canadian skincare and makeup brands like The Ordinary and MAC Cosmetics may be exempt from the 25% tariff on Canada and Mexico.
- Italy: Italian makeup and skincare products, such as those from Kiko Milano, Prada Beauty, and Gucci Beauty, may be affected by a 10% tariff.
- China: China is the fifth largest importer of beauty and skincare products to the U.S., with about 8.8% of the market, and is subject to a 145% tariff, including a 25% tariff on China itself.
Conclusion
As the beauty industry faces increased tariffs, consumers may experience sticker shock when shopping for international beauty brands. While the impact of tariffs may be felt next year, it’s essential to stay informed about trade agreements and their effects on your favorite brands. By understanding the international makeup and skincare products that are imported to the U.S. and the potential implications of tariffs, you can make more informed purchasing decisions and stay ahead of the curve in the beauty industry.
As the global beauty supply chain continues to evolve, it’s crucial to stay informed about the latest developments and their impact on your favorite brands.