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Did you know the US cosmetics market was valued at $91.4 billion in 2023, making it one of the largest beauty markets in the world? However, recent makeup import taxes and rising tariffs on imported cosmetics are hitting beauty goods, and the prices of products are increasing, affecting not only big brands but also beauty or cosmetic products around the world.
Tariffs are taxes imposed on foreign goods, which are meant to defend local industries, balance trade, or restrict other nations. They increase the cost of foreign products, which can redirect demand to local substitutes. For consumers, it increased retail prices. For businesses, it tends to result in supply chain adjustments, pricing strategies, and market planning.
The US has a rich tradition of using tariffs as a strategic economic weapon, back to the Smoot-Hawley Tariff Act in 1930, and the latest actions under the Trump and Biden administrations. Originally formulated to protect American employment, tariffs have frequently resulted in tensions with important partners in trade. In recent times, tariffs have been imposed not only on manufactured goods but also on consumer items, such as cosmetics, representing a change in US trade policy focus.
As more imported cosmetics face new duties, industry experts predict a 5–15% price hike in certain categories. These changes cause shifts in consumer behavior, brand strategies, and the entire supply chain. In this blog, we will discuss US tariffs on cosmetics, how they affect your beauty business, and what's coming next. Let's explore the tariff effects on beauty products in detail!
The US cosmetics industry is huge, with over 3.5 million people and generating tens of billions in annual revenue. The market includes everything from skincare, makeup, and fragrance to hair care and personal hygiene products.
Most of the US' imported cosmetics originated in France, South Korea, China, and Canada. Only France accounted for more than $1.3 billion in cosmetics exports to the US alone in the year 2022. With countries affected by tariffs, the trade has some heavy source disruptions on its hands.
US Cosmetic Market Size (2025-2029) USD Billion
Reference: https://www.oberlo.com/statistics/us-cosmetics-market-size
In early 2025, the US government increased tariffs on Chinese imports from 10% to 20%, affecting a wide range of beauty products, including makeup, haircare, and skincare items. Brands heavily rely on Chinese manufacturing, such as E.L.F. Beauty, which sources approximately 80% of its products from China and faces significant cost pressures.
To maintain profit margins, companies are considering price hikes. For example, beauty products may see price increases of up to 20% due to the tariffs. Some companies are reevaluating their pricing strategy for imported cosmetics to deal with the new duty rates on skincare and makeup items from tariffed countries like China and South Korea. However, domestic production presents challenges, including higher labor costs and limited raw material availability.
Consumers are likely to face cosmetics price increase, potentially leading to reduced optional spending in this category. Price-sensitive consumers may shift towards domestic or tariff-exempt products, influencing market share dynamics among brands.
China: Skincare ingredients, makeup components
France and Italy: Perfumes, luxury fragrances
South Korea: K-beauty products, sheet masks
These tariffs go from 7.5% to 25% by category.
Americans may end up paying a lot more for imported skincare, makeup, and other personal care products, anywhere from 10% to over 60% extra, depending on the country of origin. For example, if a European moisturizer normally costs $60, a 20% tariff could raise the price to $72.
Tariffs raise the cost of imports directly, something which companies may well transfer directly on to consumers. For example, a $25 serum will now cost consumers between $28–30 more, all thanks to added duties.
Wholesalers from Europe and Asia report 10–20% cost increases. Retailers are faced with two options: pass on the cost or increase prices, both uncertain in a price-conscious market.
Not just finished goods are impacted, raw materials, such as essential oils, mica, and glass packaging, also get hit with tariffs. This increases the cost of production for U.S.-based manufacturers too.
French lipsticks: Increased by $3–$5 on average
Korean sheet masks: Were $1–$2, now are $2.50–$3.50
Luxury perfumes: Increased by 15% in price
With prices rising, consumers are now preferring luxury purchases. Some now skip luxury brands or postpone purchases, particularly in the fragrance and premium skincare categories. American consumers are switching to local indie brands, private labels, and price-sensitive alternatives. e.l.f. and The Ordinary are among the brands that have become successful because they are inexpensive and tariff-free to produce.
Outdated and inconsistent supply are compelling consumers to try new brands, breaking down loyalty to established brands that had relied on import supplies.
Brands and businesses are changing their sourcing strategies, trying to avoid countries with high tariffs or shifting production to Vietnam, India, or even the US to stay competitive. The best ways brands handle tariff-related price hikes are the following:
Companies are:
Diversifying supplier bases
Investing in automation to reduce local production costs
Shifting to tariff-free trade partners
Look for more "value packs," smaller packaging, and multi-purpose products to provide greater value to consumers at affordable price points.
Retailers are:
Providing regular BOGO promotions
Introducing "mini" versions of top sellers
Bundling products to preserve value perception
The impact of US trade tariffs started to affect cosmetics imported from other nations. One of the largest cosmetics firms in the world, L'Oréal, acted quickly to defend its position in the market. Assuming its customers would be highly price-sensitive during inflation, L'Oréal solved the problem with a mixed approach:
Relocated some of the production processes and packaging within the United States, decreasing the dependence on foreign suppliers and avoiding certain import tariffs.
Price increases were kept low, but rather than suddenly raising prices, they packaged goods into value sets or limited collections. That allowed them to justify the slightly increased price to the consumer while maintaining perceived value intact.
Additional retail partnerships with market leaders such as Ulta and Amazon to maintain regular visibility and reach American consumers, particularly online or in big-box stores.
Completely committed to focused digital marketing, assuring customers that quality was not affected despite new size ranges or packaging.
This tactic allowed L'Oréal to remain competitive without cutting off its faithful customer base, and the company continued with strong sales performance within skincare, makeup, and haircare lines.
In a report published by the Peterson Institute for International Economics, tariffs made consumers pay more but did little to boost domestic production in the beauty industry. The cost-benefit analysis indicates that although tariffs might try to protect native jobs, their effect on consumer wallets, brand revenues, and international relations might be an even match for the benefits, particularly in sectors such as cosmetics.
Due to high tariffs and changing trade policies between China and the USA, beauty and cosmetic product manufacturers from both countries should now look for buyers in other parts of the world. It's a good time to explore new markets like India, South Korea, Europe, and the Middle East.
These regions have a growing demand for beauty products such as skincare, makeup, haircare, and wellness items. Finding buyers and distributors in these areas can help businesses grow and avoid spending too much on just one or two countries. Here are some helpful websites where beauty and cosmetic businesses can find new buyers and trading partners outside the US and China:
Tradewheel.com is a global B2B marketplace where sellers and buyers from all over the world connect. It's a great place for businesses selling beauty and personal care items like creams, lotions, beauty tools, and hair products. Sellers can find buyers from different regions like Europe, South America, Africa, and Asia. The platform has a diverse network of reputable cosmetic and beauty products suppliers and buyers from whom you can easily connect and do B2B trading in a safe and secure environment. Beauty and cosmetic businesses looking to expand beyond the US and China can explore this useful website to discover new buyers and trading partners.
BeauteTrade is specially made for the beauty and personal care industry. It helps sellers connect with salons, retailers, and distributors looking for makeup, skincare, and other cosmetic products. Since it only focuses on beauty, the platform makes it easier to find serious buyers who are in the same industry. Whether you want to sell or buy, the BeauteTrade platform offers reliable cosmetic business solutions. With the rising U.S.-China trade tensions, BeauteTrade offers a strategic advantage by enabling cosmetic exporters and importers to explore alternative trade routes and connect with new partners across Asia and Europe.
IndiaMART is one of the biggest B2B websites in India. If you want to sell or buy beauty products in the Indian market, this is a great platform. You can find suppliers for raw materials, packaging, or even finished products. It also helps you reach out to Indian retailers and distributors. Due to the U.S.-China tariffs, IndiaMART has become an important platform for buyers looking for high-quality alternatives to Chinese products. It allows sellers to reach regional buyers, especially in Asia, the Middle East, and Africa, without facing trade barriers from the US or China.
Yes, importing cosmetics into the US in 2025 remains profitable, but it's more complex due to rising costs and shifting trade policies. The US has imposed tariffs of up to 25% on imports from countries like China, Canada, and Mexico, significantly impacting the beauty industry. These tariffs affect not only finished products but also essential components like packaging and ingredients, leading to increased production costs.
As a result, consumers are experiencing higher prices. For example, a moisturizer that previously cost $60 may now be priced at $72 due to a 20% tariff. This trend reflects the broader issue of makeup price inflation in the USA. Despite these challenges, companies like Galderma have reported strong sales growth, indicating that demand for beauty products remains strong. However, smaller brands may struggle to accept increased costs or find alternative suppliers, potentially affecting their profitability.
While the beauty industry in 2025 faces challenges due to tariffs and inflation, opportunities continue for businesses that can adjust to the changing environment.
The US cosmetic import tariffs are changing the beauty industry, from sourcing and cost to consumer behavior and brand strategy. While they aim to increase domestic production, the increased cost is forcing businesses and consumers to rethink their sourcing strategies. The beauty industry future quite possibly lies in the policy transition, international negotiations, and how quickly brands respond. This blog will give you a detailed analysis of the effects of the US-China trade war on beauty products. Stay informed and adapt fast, read this blog for the latest updates and insights on how global trade policies are reshaping the beauty industry!
What triggered the US tariffs on cosmetics?
Tariffs were imposed as part of general trade wars, particularly with China and the EU, to balance trade and help US manufacturing.
How much have cosmetic prices risen due to tariffs?
Prices have risen 5% to 20%, depending on the product and country of origin, particularly for such products as perfumes, lipsticks, and imported skincare.
Are American-made cosmetics impacted too?
Yes, indirectly. The majority of US brands depend on foreign ingredients or packaging, and therefore, even items produced here have experienced small price hikes.
