How Do Tariffs Impact the Canadian Beauty & Skincare Space

​The recent imposition of a 25% tariff by the U.S. on Canadian imports, and a reciprocal tariff of 25% tariff on select luxury beauty, skincare, and personal care products imported from the United States into Canada poses significant challenges for skincare brands across North America, especially those collaborating with Canadian manufacturing partners.

The imposition of tariffs threatens to increase production costs, disrupt supply chains, and affect market competitiveness.​ Brands that manufacture their products within Canada and export to the U.S. are directly impacted by these tariffs. On the other hand, this move may encourage consumers to shift their preferences toward locally produced skincare items, potentially benefiting Canadian brands that focus on domestic manufacturing. ​

Potential Challenges For Canadian Brands

Increased Costs for Ingredients and Packaging

Many raw materials and packaging components used in skincare manufacturing come from the U.S. or other countries. If tariffs apply to any of these imports, production costs could rise, leading to higher prices for Canadian brands.

Supply Chain Disruptions

If suppliers face delays or increased costs due to trade restrictions, Canadian manufacturers may struggle to source materials as efficiently as before. This could impact production timelines and product availability.

Competitive Pricing Pressure

If larger international skincare brands absorb the extra costs or shift production strategies, Canadian brands may need to adjust pricing to remain competitive in the domestic market.

To mitigate these challenges, Canadian skincare brands should evaluate their supply chains, explore alternative markets, and emphasize their commitment to quality and local production in their marketing strategies. Collaborating with domestic manufacturing partners may offer a competitive advantage by appealing to consumers seeking Canadian-made products amidst the evolving trade landscape.

Potential Advantages for Canadian Skincare Brands

Stronger Buy-Local Movement

With tariffs affecting U.S. beauty imports, Canadian consumers may be more inclined to support homegrown brands. A shift in consumer behavior could drive more interest in locally made skincare products. According to a study from Numerator “When asked about their purchase intentions, 61% of Canadian consumers indicated they are either very likely or somewhat likely to seek out Canadian-made goods in light of potential tariffs.”. 

Stable Domestic Manufacturing Costs

Brands that work with partners who source ingredients and packaging from within Canada may be less affected by price fluctuations compared to those relying on imports, and will be less inclined to increase pricing for customers to offset additional costs.

Market Opportunity for Retail Expansion

If major U.S. brands become more expensive due to tariffs, Canadian retailers may prioritize stocking domestic brands, creating more shelf space for local skincare lines.

Clamar Cosmetics Inc. recognizes that the recent tariffs create challenges and opportunities for Canadian skincare brands. Higher costs for imported ingredients and packaging, along with potential supply chain disruptions, may affect pricing and production timelines. However, as a Canadian manufacturing partner, we see an opportunity for brands to strengthen their local supply chains and appeal to consumers prioritizing Canadian-made products. 

With a growing shift toward supporting domestic goods, brands that emphasize high-quality local manufacturing can gain a competitive edge in the market. Our commitment to sourcing and producing in Canada positions us to help brands navigate these changes while maintaining product integrity and market presence.