Canadian Beauty Brands Unite Against Trump’s Tariffs

In response to President Trump’s imposition of 25 percent tariffs on Canada and Mexico, Canadian beauty startup founders swiftly organized the Shop Canadian Indie Beauty Collective. This initiative showcased domestic offerings from brands such as Everist, Graydon, and Sahajan, highlighting a newfound sense of product patriotism among Canadian beauty brands. The collective, comprising 20 brand founders, quickly set up a website and engaged a publicist to promote Canadian beauty products within the country.

The Canadian beauty industry, heavily reliant on exports to the US, faced the dilemma of absorbing higher costs due to tariffs or passing them on to consumers already grappling with inflation concerns. Prior to the tariff implementation, Canadian beauty brands rushed to dispatch products to US warehouses to mitigate the immediate impact. Amidst this uncertainty, there was a surge in “Buy Canadian” campaigns on social media by influencers, retailers, and brands, advocating for local products.

Canada, known for nurturing global beauty brands like MAC Cosmetics, Deciem, and Ilia Beauty, has traditionally been an export-oriented beauty hub. The necessity to target the US market right from the launch phase has been a norm for Canadian beauty startups. This dual-market strategy has made Canadian founders resilient and adaptable, with a significant portion of sales often coming from the US market.

The implications of the tariffs extend beyond Canadian brands selling in the US, as retaliatory measures and consumer boycotts could impact US brands’ performance in Canada. The uncertainty surrounding the application of tariffs on Canadian goods and the potential erosion of profit margins have left the beauty industry on edge. To maintain price stability, brands have expedited product shipments to US warehouses before the tariffs take full effect.

Despite short-term strategies to cope with the tariffs, the long-term outlook for Canadian beauty brands remains uncertain. The prospect of a US-led manufacturing shift appears impractical in the beauty sector due to the intricate nature of product development and manufacturing processes. The prevailing trade tensions have prompted Canadian founders to explore diversifying their market expansion strategies beyond the US, anticipating a challenging year ahead for the Canadian startup scene.

As the beauty industry grapples with the impact of tariffs, there has been a resurgence of “Buy Canadian” sentiment among consumers and brands. Canadian beauty companies have intensified efforts to promote their national identity, emphasizing the importance of supporting local products. While short-term measures are being implemented to mitigate tariff effects, the long-term repercussions on the industry remain a matter of concern for Canadian founders and investors.