CBC's Sannah Choi breaks down why we're seeing a rising cost in cosmetics and personal care products in the face of U.S. tariffs.

Toronto

Cosmetics and personal care products are becoming more expensive as global supply chain disruptions and tariffs, especially those imposed on goods from the United States, take effect. Initially, Canadian retailers were insulated from price hikes due to existing stockpiles, but as reserves dwindle, new imports are subject to higher costs and retaliatory taxes.

These increased costs are passed down the supply chain, ultimately reaching consumers. Small businesses and brand owners report difficulties with fluctuating prices and sourcing products, while experts warn that ongoing trade tensions could lead to changes in product formulations as manufacturers seek alternative suppliers. Consumers are advised to stock up on preferred products and consider supporting local brands.

The rising cost of beauty products

There's a saying that beauty is pain. And the next time you pay for your favourite lipstick or shampoo, it's possible that you may feel an even deeper pinch. That's because the cosmetics and personal care industry is greatly linked to the global supply chain. And that's been disrupted by the ever-changing trade war. And even though it started months ago, a trade lawyer explains why we're starting to see the price hikes now. Personal care goods were a little slower to show increased prices in Canada because the supply chain is sort of a longer supply chain. And so many warehouses had already stocked in Canada. Now that those reserves are either dwindling or have been used altogether, importers are having to bring in additional personal care products, often from the United States, that will be subject to increased costs and then the retaliatory surtax. What's worth highlighting is these US products hold a blend of many different things, often from many different parts of the world. Each time one of those products or ingredients to make one of those products is imported into a particular country, if that country has assigned a tariff or a tax associated with that ingredient or with that finished good, that increases the amount that the importer has to pay in order to bring the good into that country. They typically then pass on that cost to a distributor or to a retailer that they are selling to, who in turn passes that cost on to the consumer. And so it's sort of like a tax domino effect that starts at the moment of importation and finishes at the cash register when the consumer buys the product. Here at this beauty supply store, tariffs have already started to touch the shelves. It's been quite difficult. Every time we order, the prices change. My number one skincare line, it comes from USA. And this is one of the products that we've been having a lot of problems with pricing and also getting the product in because of the ingredients. So we added 15% more and absorbed 10%. It's called white soap. Oh, that's nice. It's nice, right? Jane Daly has been a Canadian beauty expert insider and brand owner for decades, an influencer before there was even a name for that. The American and the Canadian beauty lovers, as far as the influencer world goes, has felt like a big, happy family. It really didn't feel like there was a border there until recently. It's jarring, actually. This tariff war has been ugly, particularly for small businesses on both sides of the border. For the majority of Canadian personal care beauty brands, their customer base is American. Daly hears a lot from followers looking to support Canadian businesses and hopes retailers will promote them more heavily on their shelves. I really haven't seen a great awareness campaign or anything like that helping Canadians to find what they need in personal care. Like, I'm just talking about, let's say, a body lotion. Like, you go to the store and you buy Vaseline or CeraVe, you're not going to switch to a $30 or $40 luxury lotion. And with all the wrinkles from this trade war, it's not just the price we pay that could change, but the actual product itself. In the next 6 to 12 months, if the temper of the trade war hasn't softened, we might see some of our standard cosmetics, shampoos, deodorants, toothpaste, et cetera, with slightly different ingredient formulations as producers try to source elsewhere throughout the world in order to avoid this tariff war. So what do you do if, let's say, your favourite nail polish is American or contains US ingredients? Well, in this time of uncertainty, the experts I spoke to said now is the time to stock up and, if you can, to buy Canadian. Santa Choi, CBC News, Ottawa.

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