On April 5, 2025, two days after Donald Trump’s “liberation day” for the American economy, tariffs on 57 countries were put in place. The tariff rates were up to 50% in certain countries, with higher tariffs on Bangladesh, India, Vietnam, and China. The response to Trump’s tariffs was quick and sweeping, with numerous countries launching their own “reciprocal tariffs” on the United States.
The Fashion Sector
Of all the clothing and footwear sold in the United States in 2024, only about three percent came from US manufacturers. The remaining 97% of garments were made in countries like China, Bangladesh, and Vietnam – countries hit hardest by tariffs. A study from McKinsey and Co for their “State of Fashion 2025” report states that a “long-feared cyclical slowdown has arrived” in the fashion industry, propelled by rising inflation and soaring costs. Because consumers are purchasing less, profit margins are shrinking for many corporations. With higher tariffs further decreasing profits, corporations have no choice but to drive up the cost of goods.
This leaves much to be considered for fashion brands. With the ever-changing nature of the stock market, many consumers are anxious to see how prices will fluctuate and how retailers will respond.
The Beauty Industry
Believe it or not, many of your favorite name brands are actually manufactured in China. Brands like e.l.f., Anastasia Beverly Hills, Urban Decay, and more are primarily made in China.
Interestingly enough, many brands made in the United States may also be affected by tariffs. Ingredients and packaging are two highly profitable exports for China, and many are used by American based beauty brands. If a company is unable to get the necessary products to create their cosmetics, they may have to change the packaging, product formulation, or raise the overall cost.
You may be wondering: how much more will prices increase? I already paid almost thirty dollars for this concealer! The unfortunate truth is that no one is entirely sure. Experts have weighed in, brands and suppliers have offered their perspectives, and still there is no solid answer. There are many factors at play when it comes to raising prices, one of the most important being supply and demand.
Should I Start Stockpiling Now?
Short answer, no. While the market is incredibly volatile at this time, experts say that there is no need to enter a state of panic. Over time, prices will balance themselves out.
The good news is that these new tariffs will more than likely not stay at such staggering numbers. 75 countries with new tariff laws are already negotiating with White House officials to lower rates. According to Kevin Hassett, the US Director of the National Economic Council, there are already “offers on the table” for over 15 countries to negotiate tariff rates.
So, take a deep breath. You don’t need to buy 25 Maybelline mascaras just yet.