“This Is Insane”: Beauty Brands Scramble To Assess Tariff Impacts And Mitigation Strategies

After President Donald Trump announced sweeping tariffs on some 180 countries and additional “reciprocal” tariffs on roughly half of them last week, Melissa Butler, founder of The Lip Bar, took to Instagram to explain to her followers that the 32% reciprocal tariff on Taiwan will send her brand’s cost of goods soaring since it manufactures 85% of its makeup in Taiwan.

“Small business especially can’t afford these tariffs. This is insane,” she says in a video on the platform. “If y’all see our prices go up, this is why.” In a caption, she added, “Good luck to all the small business owners out there. You may want to raise prices and cut costs now.”

Beauty Independent was wondering how other beauty brands are reacting to the tariffs. So, for the latest edition of our ongoing series posing questions relevant to indie beauty, we asked 16 beauty brand founders and executives the following: How will tariffs impact your business? What are you doing about them?

Julie Longyear Founder, Blissoma

Right now, we are doing a lot of listening, observing and thinking so we can determine the best course of action for our unique brand. Blissoma does control our finished goods manufacturing from within the U.S.A., and I'm newly appreciating that that does actually still give us some advantage compared to other brands in a tariff heavy world.

We're facing 79% tariffs now on all the glass cosmetic bottles, jars and related packaging pieces such as lids and droppers that we get from our Chinese bottle supplier. We've already looked, and there is no equivalent bottle manufacturer in the U.S.A. We have explored all other options, and we don't have a choice but to continue to use the same bottles. This is our biggest single cost impact.

We are also now facing tariffs on many of our other raw botanical materials and components that come from overseas. Some of those impacts won't be 100% clear for a while because large packaging companies that are based in the U.S.A. often still manufacture overseas in a variety of factory locations.  We'll see those impacts on our next orders.

For our botanicals, we will be paying 30% more for the oils we import from South Africa, 23% for the tamanu oil we get from Vanuatu, 32% for ingredients like patchouli oil from Indonesia, 20% for the natural emulsifiers that we purchase from EU companies, and the list just goes on. The minimum tariff impact we'll be facing on botanical imports is 10%. Some of those ingredients that originally come from overseas we buy through U.S.A. distributors, so we're likely to see a markup on even the minimum tariff.

We actually just paid for and put labor into getting our first organic certificate so that we can continue importing organics, so this is a very unwelcome addition to our costs to start sharing global botanical ingredients with more people.

There is a lot to still figure out, but I'm currently estimating that we're going to see a minimum 20% average increase in cost to our botanical and cosmetic raw materials across the board. That's where I'm starting with cost calculations, and I'll modify as things become more clear.

Where I'm newly appreciating Blissoma's model is in the fact that these are impacts to components, not finished product. Companies that are manufacturing their finished product overseas, for example, or are purchasing Korean skincare brands are going to be facing a much steeper impact.  They're going to be paying tariffs not just on the components, but on the finished goods value.

Here is a sample calculation of what a finished goods tariff scenario could look like for an importer:

Product value = $10 x 25% tariff = $2.50 tariff

Cost to import the item (without shipping costs or other fees) = $12.50

Markup to wholesale price $12.50 x 2 = $25

Markup to retail price $25 x 2 = $50

The total impact to the retail price is an increase of $10 in this situation, and it's next to impossible to avoid making that increase or one very close to it. By contrast, I'm estimating that the comparative retail value impact on our products may be something like $3 to $4 overall. That's because components still cost less than finished goods, so even though the majority of my components are affected, it's still less than other companies may face.

We've reached out to our bottle supplier as a starting point to see if there is anything we can do to decrease the tariff impact on our next order, which we're due to place anytime now.  We're still going back and forth with them.

I already know that our client base will really suffer if we increase prices again.  I'm considering a lot of different strategies on how to handle things, but haven't landed on anything certain yet.

We've been working on tightening up operations to prepare for this, though, since we knew it was likely coming.  We changed some of our policies around use of company time to keep our labor focused on productivity since fair living wages for our USA manufacturing team are one of our biggest costs as a brand.

And, of course, these tariffs could be reduced or eliminated at any moment.  It takes us a lot of time and effort to adjust our prices for retail and wholesale customers, so we don't want to invest that time and labor and damage our brand's price strategy unless we absolutely have to.  I don't know what else we would really cut in our budget to avoid a price increase, but we're trying to figure it all out right now.

Sometimes insight comes when we don't expect it, so I'm focused on doing the best I can and not wasting energy on panic. Everyone is getting hurt right now, so I'm not alone. I feel like the full path forward will become more clear in coming days and weeks.

Alexandra Fine Co-Founder and CEO, Dame

 

Due to the 54% tariff on our products made in China, our costs have surged, so we’re adjusting prices, but we’re not staying silent. We’re adding a “Trump Tariff Transparency” line to highlight how political decisions impact small businesses. It’s our way of turning frustration into awareness—and action. We are adding $5 for now. It’s not enough to cover the increase, but it’s a start.

Holly Barko Founder and Doctor, RX Youth Skincare

While our products are manufactured in the U.S.A., the bottles we use are imported from China. Realistically, most primary packaging is made outside of the U.S.A., and it can be difficult to find similar packaging that is made locally. Because our products have a custom-made label (purchased in rolls of 1,200 each), if we were to change to a different brand of bottle, this would mean we would also potentially need to make new custom labels to fit those bottles (another huge expense).

Additionally, we have a sunscreen product that will be launched this year, and because it has completed all the required FDA stability testing in a certain type of bottle purchased from China, we still plan to use that same bottle to fill the initial inventory. Otherwise, we would have to repeat the testing in the new bottle at an additional cost and add an additional six months required for the testing.

So, these tariffs represent a domino effect. They don't just affect one aspect of our business. And, at the end of the day, the total cost of producing one bottle of a product will go up. As a new startup company, we are already operating at a loss for the first year because of all the expenses required to launch a new business. It might be more palatable if we had already been in existence for years and were making a reasonable profit.

But, inevitably, the price of our products will need to increase to accommodate the new price of packaging unless we can find a reasonable alternative that will still work with the labels that we have already printed. In the best-case scenario, we can keep using the same bottles with a modest price increase and still use the labels that we have available.

Sabeen Mian President, Performance Beauty Group’s Lash Division

The newly announced tariffs are having a profound impact on our business. Our COGS have increased almost 50% overnight due almost entirely to the additional import duties on Chinese goods. As a business that relies on the highest-quality eyelash manufacturing which is in Qingdao, a hub of global lash production, we have no short-term domestic alternatives. These kinds of production capabilities simply don’t exist in the U.S. right now.

We’re doing everything we can to navigate this situation thoughtfully and responsibly:

We are actively negotiating with our suppliers to find shared solutions. This includes looking at cost-sharing opportunities or production efficiencies that don’t compromise quality. But we’re clear on one non-negotiable: we will never cut corners on quality. Velour, Lilly Lashes and FlutterHabit are beloved precisely because of the craftsmanship and consistency of our lashes.

We are exploring selective price adjustments. A 50% price hike to consumers is simply not feasible—nor do we think it’s fair—but these rising costs cannot be absorbed by brands alone. If we reach a point where some price increases are necessary, we will be transparent with our customers about why, and we’ll continue to offer the best possible value for the unmatched quality we deliver.

We are investing in the long term. While we are exploring whether certain components or processes could eventually be moved closer to home, false eyelash manufacturing and beauty packaging infrastructure simply doesn’t exist in the U.S. today. Building it would require significant capital investment and time—years, not months. So, in the short and medium term, international manufacturing remains essential.

What I love most about the beauty industry is how democratized it has become over the last 15 years, empowering small businesses and independent entrepreneurs to thrive. That accessibility has led to an explosion of creativity and innovation that’s made beauty more inclusive, expressive and exciting, but these tariffs threaten that progress. As small businesses struggle to absorb rising costs, we may see increased consolidation, and, with it, a stifling of the very innovation that has defined this era in beauty.

At the end of the day, these costs will have to be shared across the value chain by brands, suppliers, and, yes, even consumers. If they aren't, many small- and medium-sized beauty businesses simply won’t survive. These tariffs threaten not just prices, but the entrepreneurial spirit and diverse voices that make this industry so dynamic. We’re doing everything we can to adapt, protect jobs and continue to deliver exceptional products to our loyal customers.

Naomi Hung Co-Founder, Mochidream

Because we are a skincare brand for tweens, from the outset we felt strongly that our products need to be manufactured in reputable U.S.-based facilities that are familiar with domestic rules and regulations. While this means that a portion of our COGS may be less impacted by the recently announced tariffs, our secondary packaging (boxes) is produced outside of the U.S., so we are looking at significant increases in that area.

We were expecting a shipment of boxes to arrive the day before the first tariff announcement in February, but the shipment was delayed, meaning we faced paying thousands of dollars in tariffs because of a delay on the supplier's end. After the first tariff announcement, we negotiated with our supplier to ship a smaller batch of secondary boxes and for them to cover the extra tariff costs given the delay on their part.

As soon as we had news that the tariffs were on hold again, we directed our suppliers to ship us the remainder of our order to avoid being hit with tariffs again. In addition to the monetary impact, this uncertainty around tariffs has made it challenging as a new business to anticipate costs and manage inventory (and, by extension, cash flow).

We are seeing this rapid rise in cost everywhere, from groceries to clothing to household goods. As moms, we are conscious of the impact that a price increase can have on families, knowing consumers are going to be squeezed everywhere they turn.

As a bootstrapped brand, that means we have to be nimble in our overhead costs, get creative with marketing and possibly look for outside funding earlier, but it is important to our mission of bringing joy and self-care to tweens that we do everything we can to avoid raising our prices during this time of uncertainty.

Lara Schmoisman Founder and CEO, Infuse

The tariffs undoubtedly impact our business, as they do all brands, particularly in terms of increased COGS. We've seen upward pressures depending on specific ingredients and packaging materials sourced internationally. However, rather than reacting with panic or immediate price hikes for our consumers, we're taking this as an opportunity to proactively engage and negotiate closely with our suppliers and vendors.

Transparent, open dialogue helps us jointly manage these costs and find creative solutions that mitigate the impact on our customers. Communication remains key, and we’re committed to keeping our community informed about any changes, emphasizing our ongoing dedication to quality and value.

Shubhangini Prakash Founder and CEO, Feather & Bone

Feather & Bone sells 100% waterless, plant-based skincare, meaning we are 100% ingredients. Many of these ingredients are inspired by Indian traditions such as mango butter and turmeric. These do not grow in the U.S. and likely never will, so tariffs on these imports significantly affects our costs.

With tariffs imposed on raw materials, it’s no surprise that suppliers will increase their prices. The question is, by how much? After speaking with our current suppliers, we’ve learned they do have stock available, but even they are unsure how pricing will shift. The real challenge is the uncertainty. Tariff rates have fluctuated and can change again, making it difficult to predict the true cost impact.

Another concern is availability. If tariffs stay high, it may no longer be viable for suppliers to continue importing certain ingredients at all. We’ve already heard murmurs that some items might become too expensive to justify importing. That leaves us not just looking at higher costs, but possibly needing to source entirely new suppliers—and that’s more than just a pricing issue. It means potentially reinventing our entire supply chain.

Our brand also uses a lot of sustainable packaging such as aluminum, which is predominantly manufactured in China. This means we’re hit twice with tariffs: Once on aluminum and then on China. As a result, we’re actively looking for alternative suppliers in other countries and also exploring options to source similar sustainable packaging from local U.S. suppliers.

Raising prices is a complex decision. Skincare products are highly price-sensitive, and even small increases can significantly impact demand. Additionally, such changes can shift the customer profile as price elasticity varies across different segments. Small business owners aren't the only ones grappling with potential price hikes, consumers will face them as well across all product categories.

The key question is: If we raise our prices, will we risk pricing out our customers, especially when they’re already seeing price increases elsewhere? To avoid price increases, we are manufacturing our bestselling product, Face Gems, a face wash tablet, in-house. We recently bought a tablet press. We're crunching the numbers to assess the optimal number of SKUs we should offer, the sizing of our products and the potential of eliminating free shipping on our website.

Jack Jia Founder and CEO, Musely

At Musely, all of our prescription medications are compounded 100% in the U.S.A., so we are spared from the direct impact of tariffs on finished goods. That said, no one is completely insulated. The global supply chain for raw ingredients, packaging and manufacturing equipment is deeply interconnected, and tariffs inevitably raise costs across the board, even for products made domestically.

We’ve worked incredibly hard to maintain our ~$30/month pricing despite years of inflationary pressure and rising operational costs. Our mission is to keep prescription skincare accessible and affordable to all, and that becomes even more critical when middle-class Americans—our core customers—are being squeezed from all sides.

But the bigger concern isn’t just cost, it’s consumer confidence. With the stock market losing $6 trillions in the last a few days, we're seeing cutbacks across all spending levels. Even wealthier Americans are tightening their wallets, and that affects everyone.

If there’s a silver lining, it’s that beauty and skincare like higher education are historically resilient during recessions. People still want to feel good about themselves during hard times. So, at Musely, we’re doubling down on operational efficiency and clinical innovation to absorb as much of the impact as possible so our customers don’t have to.

Surbhee Grover Founder, Love, Indus

It’s still early days, and we’re watching the situation closely. What we do know is that costs are likely to rise, especially for the South Asian ingredients we uniquely rely on. Almost overnight, those inputs have become meaningfully more expensive.

What remains less clear is the trickle-down effect on the broader supply chain. Even though many of our other raw materials come from domestic suppliers, it's difficult to imagine any part of the ecosystem that isn't, in some way, touched by global inputs.

One relative advantage is that our manufacturing is fully based in the U.S., which gives us more control and shields us somewhat compared to brands that produce overseas.

In terms of next steps, we’re taking a measured approach. We’ve started identifying domestic suppliers for some of the imported ingredients and components, but we’re not rushing to make substitutions. Cost is a key factor, of course, but so are reliability, quality/performance and lead times. Those tradeoffs need to be evaluated.

In short, we’re not making knee-jerk decisions. We’re focused on identifying areas where we are most vulnerable and mapping out options to first understand the situation better. We’ll make deliberate, sustainable choices once the dust settles and we have a clearer view of the landscape.

Mary Hanna Founder and CEO, Phytoskin

One of the key differentiators of Phytoskin is its proprietary laboratory in the U.S.A.  All our research, testing and manufacturing is based in the USA and privately owned. However, although we do not see any tariff hits from manufacturing or raw material side, I think, in unity with most brands, we will face up to 50% increase in our packaging costs from Asia. But, thankfully, this is only one area of our COGS.

Tariff threats started last year, and, honestly, the first thought was, “Finalize all upcoming packaging orders immediately and have enough product for the next few months.” So, by Nov. 11, we were stocked up, not just for the existing products, but the new product we were launching, Heirloom 20% Vitamin C serum. This was all to avoid paying tariffs for at least the first three quarters of 2025 as we plan what to do next. So, right now, we are exploring more local options for packaging needs, but the struggle is real.

I think, in general, choosing local vendors is preferable for all and is one of the  low risk paths. We explored this path from a packaging perspective before we opted in for offshore vendors.  The problem we saw was lack of variety and accommodation to small business orders.

Small brands cannot order 100,000 bottles. It's just not feasible. We just don't have the space! So, as brands explore more local vendors and solutions, my hope is more packaging manufacturers with small businesses in mind will emerge. This could really help U.S. brands in the short and long term.

Lisa McCormick Founder, Wild Mary

At Wild Mary, our commitment to sourcing the highest quality organic botanical ingredients and specialized packaging means that nearly all of our components are sourced internationally. From full-spectrum, supercritical plant extracts to violet glass bottles, our supply chain depends on a global network of trusted partners. As such, we’re closely monitoring how the proposed tariffs may affect our operations.

We’ve contacted our suppliers for updates, and most are still determining whether the tariffs will impact them. In the meantime, I've reviewed the Harmonized Tariff Schedule. Many of the ingredients we use currently fall under categories with no general duty or qualify for preferential treatment based on country of origin. That said, we’re staying alert to potential changes.

Some of the ingredients we use like essential oils come from regions with unique growing conditions and traditions such as rosemary verbenone from South Africa or Bulgarian lavender. Since these materials aren't produced domestically, we hope that future tariff decisions will take their origin-specific nature into account.

We’re not implementing any pricing changes at this time, but will communicate openly with our community if adjustments become necessary. Our commitment remains to providing high-performance organic botanical skincare, and we will navigate any tariff-related challenges with this priority in mind.

Marianna Blyumin-Karasik Founder and Dermatologist, Stamina Cosmetics

Fortunately, Stamina Cosmetics is proudly manufactured in the United States, so immediate tariffs will not impact our production or delivery costs. However, we do source some natural-based raw materials from overseas. As global supply chains evolve and tariffs potentially increase, we anticipate those upstream costs may rise.

In turn, this could affect our cost of goods and ultimately lead to modest price adjustments. We are proactively working with our suppliers to negotiate terms and explore alternative sources where possible, while price adjustments to the minimum for our consumers.

Loretta Mottram CEO, Malibu Wellness

As an employee-owned international health and beauty company, Malibu Wellness is committed to strategic global expansion by establishing local partnerships and exploring diverse market entry strategies.

Our approach includes evaluating potential sourcing options to address challenges in material procurement, particularly for our domestically manufactured bottles, aligning with our sustainability goals. We are shipping in larger quantities, switching to domestic suppliers when feasible. We are analyzing packaging solutions to manage costs effectively and determining which expenses can be absorbed or may need to be passed on to customers.

To enhance responsiveness and reduce turnaround times, we are considering the establishment of regional hubs and exploring options to minimize cross-border shipments. Our strategy also involves tailoring products to meet the specific needs of the countries we serve without jeopardizing the high quality of our collections, with our R&D team analyzing formulations, labels and repackaging options to reduce tariff costs. We are developing dynamic pricing models and considering smaller product sizes to address price sensitivity issues associated with tariffs.

Through this multifaceted approach, we believe that strategic pricing and operational efficiency will position us for sustained long-term international growth.

Manuela Valenti Co-Founder, By Valenti

Tariffs have impacted every U.S. business long before President Trump, and they will continue to impact anyone who doesn’t plan ahead or operates with unnecessary overhead. Over the 20 years we've been in business, we've weathered multiple waves of tariffs, whether from the EU or other international markets, by remaining agile, pragmatic and patient.

We don't make price adjustments based on uncertainty or emotion. Raising prices preemptively, without knowing the exact impact, isn't something we consider responsible. At this point, we don't have enough concrete data to justify any change in pricing or cost structure. We’re monitoring the situation closely and will not make reactionary decisions based on retaliatory headlines or politically charged responses.

As a small, independent Italian brand that formulates and manufactures all products in the U.S., we maintain a robust supply chain and hold several months of inventory across critical components and raw materials. This buffer gives us the space to analyze the actual impact—if any—before taking action.

Ultimately, our commitment is to our customers. Any decision that could affect them, whether related to pricing, sourcing or product availability, must be grounded in verified data, not speculation. We will continue to protect that relationship by staying transparent and resisting unnecessary disruption.

Gina Ciraldo Stabile CEO, Dr Loretta

Like most U.S. beauty brands, our packaging is sourced from overseas. We manufacture the goop in the U.S., but source all of our packaging from overseas. The U.S. simply doesn’t have the manufacturing infrastructure or labor cost structure to be able to manufacture packaging at an affordable price.

It’s been a roller coaster with the tariffs since 1/20 and the constant changes.  We didn’t know this was coming at all. Everyone is glad to see the 90-day pause on most tariffs now, but the 145% tariff on Chinese goods that was implemented this week will directly impact the cost of much of our packaging. Because things are changing from day to day, it feels premature to make any sort of changes in pricing to our customers.

Instead, we’re reviewing all our packaging purchased from overseas and what we need to purchase next to determine if we can source from a country other than China. The desired result of the tariffs, according to the administration, is to move manufacturing to the U.S., but it would take years for packaging manufacturing to get started here, and we need to find alternatives from other countries in the short term, to the extent possible.

We had been working with our Chinese manufacturers on cost-sharing the tariffs, but at the 145% rate, it’s just too high to even try to share.

Lindsay Nahmiache CEO, Veriphy Skincare

The one thing I’ve learned about life and business is that there is never a dull moment, and there is always a silver lining if you look at things from different perspectives. With that said, we are also not putting our heads in the sand and pretending it is not a huge current issue for our business.

We moved fast back in December/January when we knew this might be an issue. We originally manufactured and warehoused all of our good in Canada. The first week of January, we moved half our inventory into two U.S. warehouses (east coast and west coast). This has ensured that for the immediate future we can continue to operate and ship product with no impact to pricing for our customers in both the U.S. and Canada.

In terms of new inventory, we have began global contingency preparations. We are working with a consultant who is helping us to source all the items we need from different vendors in different countries. We are then pricing where the best country to produce it will be based on our customer distribution requirements. It is a lot of extra work, but it’s also forcing us to take a critical look at our business.

One of the key elements we have working in our favor is we are a less-is-more skincare line. We use super high-quality ingredients but only have five SKUs. We were built by scientists on the belief that the higher quality of something you have, the less you need of it. That core value is helping us through these difficult times as we only have to focus on five products that deliver undeniable results versus other beauty brands that have hundreds of SKUs.

If you have a question you'd like Beauty Independent to ask beauty brand founders and executives, send it to editor@beautyindependent.com.