Concern around tariffs has some stylists and salons shopping differently.
Photo: AI-generated/ChatGPT
The professional beauty industry is no stranger to global economic shifts, and the latest round of tariffs imposed by the Trump administration may be another challenge manufacturers must navigate.
A tariff is a tax that a government places on imported or exported goods. It can make foreign products more expensive, and lead to higher prices for businesses and consumers.
With increased duties on key imported ingredients, packaging materials, and finished goods, beauty brands are evaluating how these changes will impact pricing, production, and supply chain strategies.
If this feels familiar, it’s because the industry has been here before. In 2021, a previous wave of tariffs forced many companies to rethink sourcing, renegotiate supplier contracts, and explore domestic production. Those hard lessons proved valuable, as many brands are now better equipped to pivot and adjust their strategies with greater agility.
To understand how the beauty industry is adapting to this latest policy shift, we spoke with several manufacturers and asked them to share their perspectives on the talk of tariffs, how they see it impacting them, and how they plan to respond.
DMK Skincare, founded by Danné Montague-King in the 1970s, is a paramedical skincare line that focuses on restoring skin to its optimal function by working with its natural chemistry. The brand’s unique approach is encapsulated in its four-step concept: Remove, Rebuild, Protect, and Maintain. Based in Santa Fe Springs, CA, DMK Skincare is available in over 30 countries.
Leigh Ann Pena is the Assistant General Manager / Project Manager for DMK.
Q: If tariffs are imposed on the goods your company imports to manufacture beauty products, how will that affect your sourcing strategy? Are you considering alternative suppliers or materials to offset costs?
Leigh Ann Pena: When President Trump initially imposed tariffs on China, we had already begun strategically positioning our supplier network to explore alternative supply chains outside of China whenever possible and practical. We will approach these new tariffs with the same adaptive sourcing strategy.
Our first pivot was challenging, primarily because the entire industry was experiencing similar disruptions. Suppliers we relocated to were simultaneously managing significant supply and demand shifts, which extended lead times beyond our previous expectations. Additionally, ocean freight and overall supply chain logistics were strained during this period.
The market dynamics were complex: companies were stockpiling components to prevent inventory shortages, which ultimately created warehouse surpluses when supply chain tensions eased. Our key lesson is to take a more robust and strategic approach to inventory management, working closely with strategically aligned suppliers who can provide flexibility and value added service.
By learning from our previous experience, we aim to navigate these new tariff challenges more effectively and maintain our supply chain resilience.
Q: If tariffs significantly raise the cost of key ingredients or packaging materials, would this drive changes in product formulation, packaging, or innovation? Could we see a shift toward more locally sourced or alternative ingredients?
LP: Our commitment to education and innovation remains steadfast, and our approach to sourcing raw materials will continue to reflect these core values. We will maintain our strategic sourcing practices that prioritize quality, efficiency, and alignment with our brand’s fundamental principles.
Q: Would these tariffs make it more viable to move more manufacturing to the U.S., or is that not a realistic option for the beauty industry? What are the biggest challenges in shifting production domestically?
LP: While exploring domestic supply options within the United States, we recognize the complexity of our sourcing strategy. Some packaging components are simply not currently manufactured domestically, which requires us to carefully evaluate alternatives and make strategic decisions focused on value creation.
This challenge presents an opportune moment to advance our sustainability initiative. By integrating our sustainability goals with our sourcing strategy, we can potentially address both supply chain resilience and environmental responsibility. We’ll need to conduct a comprehensive analysis of available domestic and international options, weighing factors such as cost, availability, quality, and environmental impact.
Our approach will involve identifying potential domestic manufacturers, assessing the feasibility of transitioning to US-based suppliers where possible, and developing creative solutions for components not currently produced domestically. The sustainability lens will provide an additional layer of strategic thinking to our sourcing efforts, potentially uncovering innovative approaches that align with both our economic and environmental objectives.
Dip is a sustainable hair care brand founded by Kate Assaraf in 2021. The company specializes in salon-grade shampoo and conditioner bars, aiming to provide eco-friendly alternatives to traditional bottled products. Dip’s mission is to playfully educate people about the environment while encouraging them to buy better, buy less, and shop small.
Dip is a company that emphasizes environmental awareness through its personal care products. They offer a range of shampoo and conditioner bars formulated to work for all hair types, allowing customers to choose based on fragrance preferences. Their products are designed for individuals who take hair care seriously and seek effective solutions.
Kate Assaraf, CEO, Dip, responded to our questions.
QUESTION: If tariffs are imposed on the goods your company imports to manufacture beauty products, how will that affect your sourcing strategy? Are you considering alternative suppliers or materials to offset costs?
KATE ASSARAF: More than 90%+ of our products are made in the USA, using USA labor and USA vendors–that was very important to me when I started this company. However, if tariffs are imposed, we would absorb the costs on the ~10% of our business that is made overseas–our suppliers in China are not strangers, we have a long, personal relationship with them, and at the end of the day they are kind humans that we like to do business with. We will continue to work with them since our bamboo cases and shower racks are our only items made there. Sometimes business isn’t about cost, it is about relationships.
Q: Tariffs often lead to increased production costs. How do you anticipate this affecting your pricing strategy for beauty products? Will these additional costs be absorbed by the company, or passed down to consumers?
KA: From what I know, the impact of tariffs will vary by brand. While the cost of plastic packaging made overseas is inexpensive, tariffs might only affect pricing by a matter of cents. My biggest concern is that some brands may use tariffs as an excuse to disproportionately raise prices, (aka “greedflation”) exploiting the situation under the guise of increased costs. At Dip, we’re committed to transparency and will avoid unnecessary price hikes, focusing instead on cost optimization within our operations.
Q: Would these tariffs make it more viable to move more manufacturing to the U.S., or is that not a realistic option for the beauty industry? What are the biggest challenges in shifting production domestically?
KA: It depends. For Dip we are already made in the USA. While domestic production could help mitigate tariff impacts for other brands, the cost of packaging would likely be higher, and custom packaging might require very high MOQs. Additionally, I am personally not excited about the Beauty Industry increasing plastic manufacturing domestically or globally due to its environmental impact. The real challenge is balancing cost, sustainability, and production capacity while maintaining the integrity of the earth. Plastic production comes with a lot of environmental issues, and no matter where it’s produced, it is a concern of mine.
Q: If tariffs significantly raise the cost of key ingredients or packaging materials, would this drive changes in product formulation, packaging, or innovation? Could we see a shift toward more locally sourced or alternative ingredients?
KA: Absolutely. Tariffs could be a catalyst for positive change by encouraging brands to innovate and source more locally. At Dip, we already focus on sustainability, and any cost pressures would push us further towards using alternative materials, deadstock items, and eco-friendly packaging solutions. We believe in reducing reliance on traditional plastic packaging, and tariffs might accelerate the shift toward more sustainable practices across the industry.
Photo: AI-generated/ChatGPT
TALKING TARIFFS WITH THE INDUSTRY
We also gathered statements from some of our brand partners. Their responses reflect a strong sense of preparedness and strategic planning for what lies ahead.
Minerva Beauty, founded in 2006, is a leading manufacturer and distributor of salon and spa equipment, catering to the beauty, health, and wellness industries. Based in Monroe, Georgia, the company offers a comprehensive range of products, including styling chairs, stations, shampoo systems, dryer chairs, pedicure chairs, manicure tables, stools, carts, and skincare equipment.
One of the standout features of Minerva Beauty is its expansive showroom, spanning nearly 25,000 square feet, making it the largest of its kind in North America. This facility allows clients to experience products firsthand, ensuring they make informed decisions about their purchases. Additionally, with over 100,000 square feet of warehouse space adjacent to the showroom, the company boasts a vast inventory, enabling most orders to be shipped the same day.
“Minerva Beauty is well prepared for any potential impact from the new administration’s proposed tariffs. With ample inventory on hand, we will maintain competitive pricing while ensuring a steady supply of our products. As always, we are committed to absorbing cost increases where possible and continuously seeking ways to keep prices accessible for our customers. With thousands of styling chairs, shampoo systems, styling stations, and carts ready to ship, Minerva Beauty remains dedicated to delivering high-quality products at attainable prices.” –Megan Ferlito, VP, Marketing and Business Development
Scruples Hair Care, established in 1983, is a family-owned and privately operated company dedicated to empowering hair professionals with innovative solutions. Headquartered in Houston, Texas, Scruples offers a comprehensive range of hair care and color products designed to enhance the success of salon professionals.
Education is a cornerstone of Scruples’ mission. The company offers the Scruples Encore Education (SEE) Program, providing salon stylists with in-depth knowledge and hands-on experience in the latest hair styling and coloring techniques. This initiative reflects Scruples’ commitment to the growth and development of beauty professionals.
“Scruples pricing strategy will be determined by several factors, including production costs, market conditions, and consumer expectations. While tariffs may contribute to increased costs, Scruples will carefully evaluate how to best manage these changes while maintaining product quality and accessibility. This could involve a combination of internal cost adjustments, supply chain optimizations, and strategic pricing decisions. Our goal is to balance affordability for consumers with sustainable business operations.”–Bahira Shami, CEO, Scruples
Takara Belmont, established in 1921, is a global leader in manufacturing equipment for professional barbershops, hairdressing and beauty salons, nail salons, esthetic clinics, medical clinics, and dental practices. With over a century of experience, the company has built a reputation for quality and innovation in the beauty and health industries.
In the beauty sector, Takara Belmont offers a comprehensive range of products, including salon and barber chairs, shampoo units, styling stations, and spa equipment. Their designs focus on enhancing both functionality and aesthetics, catering to the diverse needs of professionals worldwide.
The proposed tariffs are certainly a topic of interest within the professional beauty industry, but at this stage, they appear to be leverage in trade disputes, encouraging other countries to make concessions and adjustments in foreign policies. However, China and a few other countries, tariffs may be viewed as more of a long-term strategy. While we are monitoring developments closely, it’s important to note that the U.S. and Japan continue to maintain a strong economic relationship—one that appears to be strengthening further. Given that Takara Belmont USA is part of Takara Belmont Corporation in Japan (our HQ) and that over 95% of our products are manufactured in Japan by our parent company, we do not anticipate immediate disruptions.
As a company with over 100 years of history, Takara Belmont has successfully navigated global economic shifts while maintaining its commitment to quality and innovation. This long-standing legacy positions us well to adapt to changing market conditions while continuing to provide exceptional products to the professional beauty industry.
President Trump’s recent meetings with Japan’s Prime Minister signals a continued commitment to collaboration between the two nations, which is encouraging for businesses like ours that benefit from this strong partnership. With our deep-rooted history and expertise, we remain confident in our ability to serve our customers without compromise.--Steve Hughes, National Sales Manager, Takara Belmont
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