Trump’s tariffs: US-based personal care companies discuss shifting global marketplace
The Personal Care Products Council (PCPC) has expressed “significant concerns” about potential policy changes under the Trump administration that could increase consumer prices for beauty products. However, some US-based personal care companies are confident that they will be able to navigate the changes.
Personal Care Insights speaks to multiple industry players about their predictions and expectations for how the new US president will influence personal care professionals, companies, and consumers, at home and abroad.
In an open letter, Francine Lamoriello, EVP of Global Strategies at the PCPC, warns that incoming economic shifts could endanger jobs for US workers in the personal care industry. She says the industry is a key driver of the US economy, with nearly US$60 billion in US manufacturing, 4.6 million US jobs, and a direct contribution of over US$300 billion to the nation’s GDP.
According to the PCPC, millions of consumers use approximately 6–12 beauty products daily. For more than three decades, the personal care industry has generated a yearly trade surplus and achieved the second-largest net export balance of all US manufacturing industries.
Changing trade relations
Canada and Mexico are two of the US industry’s most important trading partners. Lamoriello says that US cosmetics companies have benefited from the US-Mexico-Canada Agreement negotiated during President Trump’s first term.
These benefits include commitments to common good regulatory practices that increase consumer safety and provide new market opportunities.
Meanwhile, Trump reinforced his stance throughout his presidential campaign that he would be “tough on China.” China is one of the beauty industry’s largest markets.
US personal care companies are preparing for tariffs.US cosmetics companies exported nearly US$1 billion to China in 2023, supporting US jobs and the industry’s positive global trade balance, says the PCPC.
“We appreciate the administration’s review of China’s commitments under the Economic and Trade Agreement, which can identify ways to address trade and regulatory policies in China that pose difficulties for US personal care and beauty products companies,” the American trade association explains.
Personal Care Insights contacted the PCPC for additional comment, but the organization responded: “It is our general policy not to speculate on ongoing matters. At this time, we have no further comment beyond the statement.”
Made in America
US multinational Edgewell Personal Care’s CEO, Rod Little, tells us the company is focusing on operating with “agility and innovating to provide consumers with the best products on the market and deliver on their demands.”
“While there is some uncertainty around tariffs, Edgewell’s commitment to productivity is one of the reasons for our continued growth. In addition to this, the company operates in all price tiers — private label, value, mid-tier, and premium. Given this, Edgewell is well-positioned to serve consumers in all climates.”
The personal care products company operates globally and considers itself “a good reflection of the global trade environment” because it makes products where it sells them.
A spokesperson from Bath & Body Works echoes this confidence in US manufacturing capabilities, which it believes will help the company through unpredictable tariffs and fluctuating financial situations.
The body care and scent company tells Personal Care Insights that it is prepared for the tariffs and other economic impacts during the Trump administration. It attributes this to its mostly made-in-America production.
Some comapnies speculate consumers will pay the cost of tariffs.
“Our Ohio-based Beauty Park manufacturing campus continues to be a significant competitive advantage for our brand, driving speed and operational agility. With around 85% of our products manufactured in North America, we believe we are relatively well-positioned for any potential tariff fluctuations,” the spokesperson says.
Consumer impact concerns
Bea Chiem, retail and consumer managing director at S&P Global Ratings, tells us that broad-based tariffs could hurt more US consumer products and retail companies this time compared to 2018. She calls the previous Trump presidency “more manageable.”
“Over 24% of retail credits and 19% of consumer credits have negative outlooks, indicating an above-average negative bias and little headroom for additional macroeconomic pressures,” says Chiem.
The finance and insurance company says that while a universal tariff has not yet been announced, it would only increase costs for consumer and retail companies. It is unclear if and how long these tariffs will be in effect.
S&P Global Ratings, one of the big three credit-rating agencies, analyzed the new administration’s fiscal playing field and found that price increases will be harder to pass along to the consumer — compared to Trump’s first term — because of the recent inflation cycle and an already weak consumer environment.
“Companies cannot rely solely on price increases to mitigate the extra costs imposed by tariffs, and retailers will ultimately have to decide how much they can and will pass on to the end consumer,” says S&P Global Ratings.
