Canada imposes tariffs of up to 50% on U.S. goods: How will it affect cosmetics?

On September 8, if no agreement is reached with the Trump administration beforehand, Canada will impose new tariffs on more than 800 goods from the United States. This measure includes rates of between 15% and 50% on steel and aluminum products, as well as food products. This measure responds to Trump's latest controversial measure, which has imposed new tariffs of 50% on Canadian products. Canada, for its part, has divided this measure into three sections: 50% tariffs: on steel and aluminum derivatives, dairy products, kitchen utensils, and in this first section we find products in perfumery, cosmetics, and clothing. 25% tariffs: on cheeses, fish, mollusks and other fishing products, and also on paper, wood, and cardboard. 15% tariffs: on industrial machinery, air conditioning systems, and forklifts.Canadian authorities have emphasized that imposing these types of measures was not part of their plans, but that it is a strong and comparable response to what has been imposed by the demands and the lack of agreement between both countries.How can these measures affect the cosmetic and perfumery sector?The perfumery and cosmetics market between Canada and the United States is a highly integrated and strategic trade flow within North America. U.S. Exports to Canada: Canada is the main destination for U.S. beauty and personal care exports. In 2025, the U.S. exported approximately 3.83 billion dollars in cosmetics and perfumery to Canada (335 million dollars correspond exclusively to perfumes and about $1.48 billion CAD to cosmetics/skin care). Canadian Exports to U.S.: The U.S. is Canada's main partner in cosmetics (absorbing more than 70% of its sector exports). Canada exported around 1.93 billion dollars in perfumery and cosmetics to the U.S.The imposition of cross-tariffs (with reciprocal surcharges of up to 50% in key beauty categories) transforms trade dynamics and consumption habits on both sides of the border: End of "affordable" and impulsive beauty: mass cosmetic lines (nail polishes, lipsticks, or other products considered low-cost) suffer the greatest friction. By applying a tariff of 25% to 50%, the "impulse buyer" who acquired products for 10 dollars or 15 dollars sees direct shelf increases of up to 30-40%, slowing down the purchase volume. Rise of "beauty nationalism" or betting more on national brands: In Canada, the citizen response to protectionist measures accelerates support for local brands (Made in Canada). More than 60% of Canadian consumers claim to prioritize national brands over American ones to avoid paying tariff surcharges. As Clamar Cosmetics indicates, Canadian consumers would be willing to support local brands. Search for international substitutes: e-commerce platforms register a shift in Canadian demand towards K-Beauty (South Korea), J-Beauty (Japan) or European Union brands, favored by multilateral free trade agreements that do not apply the punitive US surcharges.But these tariffs will obviously affect companies differently depending on their size.Large multinationals such as L'Oréal, Estée Lauder, and Coty will not experience such a negative impact since this increase will be applied to high-margin products to avoid losing market share. Independent brands or those grouped under indie beauty do not have this "cushion" and will be forced to raise the final price of the product, meaning the consumer will be the one to suffer from this measure.

Canada imposes tariffs of up to 50% on U.S. goods: How will it affect cosmetics?

Canadian authorities have published tariff measures that respond to Donald Trump's trade threats and affect more than 800 categories of goods