US-Canada Beauty Industry Faces Significant Impact from 50% Tariffs
The North American beauty industry is bracing for a significant shake-up as sweeping new 50% tariffs on cosmetics traded between the United States and Canada begin to take effect. Industry giants such as L’Oréal and The Estée Lauder Companies are among the most exposed, due to their extensive Canadian manufacturing operations.
These tariffs are already causing ripples in the market. Insiders warn that the much-loved $10 makeup impulse buy—a staple of the drugstore beauty segment—may soon become a thing of the past. With beauty sales already feeling the pinch from rising inflation, there are concerns that higher price tags will push consumers towards private-label or domestic alternatives. This could disrupt a deeply interconnected cross-border supply chain.
The Estée Lauder Companies have confirmed that these tariff-related headwinds are expected to impact profitability. They are actively working on mitigation strategies. These include optimising manufacturing footprints, adjusting supply chains, and exploring potential pricing actions. Meanwhile, brands like The Ordinary—known for their simple, affordable formulations—are being spotlighted by consumers as recession-proof heroes. The full industry impact is expected to become more apparent in the second half of 2026.
Source: Global Cosmetics News – North American Tariffs Coverage (August 27, 2026)