Beauty Industry Giants L’Oréal and Estée Lauder Grapple with 50% Tariffs
The global beauty industry is bracing for serious financial turbulence as sweeping new 50% tariffs on cosmetics traded between the United States and Canada begin to ripple through supply chains. Industry heavyweights L’Oréal and The Estée Lauder Companies are among the most exposed, with significant manufacturing operations in Canada now facing steep new cost burdens, according to reporting by Business of Fashion and Global Cosmetics News.
The tariffs, which hit hundreds of Canadian products exported to the U.S., are threatening to drive up prices on everyday beauty staples — from drugstore staples to prestige skincare — and experts warn that the beloved under-$10 impulse buy may soon be a thing of the past.
Estée Lauder has already warned that tariff pressures could impact its profitability by up to $100 million, triggering a sharp selloff in its stock. The company says it is actively mitigating the impact by leveraging trade programs, optimizing its manufacturing footprint, and increasing supply chain flexibility — moves it says have already offset more than half of the expected tariff impact. Rival Coty also saw its shares drop 7% following the announcements.
Despite the headwinds, Estée Lauder posted a strong finish to its fiscal year 2026, with net sales rising 5% to reach US$15 billion, driven by fragrance (up 10%) and skincare (up 4%), led by powerhouse brands La Mer, Le Labo, and Tom Ford. Beauty shoppers, however, should expect price increases at the counter in the months ahead.
Source: Global Cosmetics News – Weekly Review, Week 34 (August 27, 2026)