Consumers may soon feel the impact of rising prices for personal care products such as shampoos, lotions, and face masks. This trend can be attributed to tariffs imposed on imported containers by the Trump administration. A significant proportion of the packaging in the beauty industry is sourced from countries like China, Canada, and Mexico, which have been targeted by such tariffs.

The Sourcing Landscape

The beauty industry is heavily dependent on China for its packaging needs. As of 2020, over 30% of the bottles and lids imported into the United States came from China, with additional contributions from Canada, Mexico, and South Korea. By 2025, projections indicate that 43% of global personal care packaging will originate from the Asia-Pacific region.

Importance of Packaging Choices

As the founder of Blissoma, a skincare brand, I recognize the critical role packaging plays in product differentiation. Factors such as unique colors, shapes, and materials are essential in captivating consumers and enhancing shelf presence. Additionally, considerations regarding product viscosity, light sensitivity, dispensing methods, and eco-friendliness further complicate packaging decisions.

Once a brand commits to specific containers, altering that choice can be both costly and complex, potentially reaching hundreds of thousands of dollars in expenses due to design, printing, and tooling changes.

Financial Implications of Tariffs

In 2019, a 25% tariff was imposed on Chinese containers, justified by the administration as a measure against “unfair” competition for U.S.-manufactured products. A recent increase in tariffs has pushed the total to 45%. For a brand like Blissoma, this culminates in an increase of approximately $0.108 per container, resulting in a projected retail price rise of 65 to 86 cents for consumers.

Furthermore, each 10% rise in tariffs could lead to an increase in personal care product prices by anywhere from 32 to 43 cents. The prospect of future tariffs increasing to as high as 100% further exacerbates these concerns.

The Widening Gap

Tariffs are paid upon container shipment arrival in the United States, necessitating brands to adjust their pricing strategies to accommodate these costs. The unpredictability of tariff policies adds complexity to planning, posing additional risks to businesses already grappling with various challenges.

These challenges include compliance with the Modernization of Cosmetics Regulation Act (MoCRA), rising minimum order quantities, increased shipping costs, and heightened competition for consumers’ attention. This combination of factors has left little margin for absorbing new expenses.

The Path Forward

To remain viable in the global marketplace, brands must continuously invest in innovation. However, escalating tariffs on containers and closures jeopardize local manufacturing jobs in the personal care sector.

While American manufacturers could supply more creative and cost-effective packaging options, the current price competitiveness is lacking. Instead of funding innovation within the domestic industry, tariffs contribute to government revenue, leaving brands—and consumers—bearing the additional costs.