New U.S. trade tariffs are hitting UK and EU beauty brands—here’s how to sidestep them and protect your margins.
What’s Happening?
President Trump has announced new 10% tariffs on UK beauty exports and 20% tariffs on EU exports, making it more expensive for brands to sell in the U.S. market. With U.S. retailers unlikely to absorb the cost, brands must act fast to restructure their supply chains.
How to Avoid the Tariffs & Protect Profit Margins
- Move Manufacturing to the U.S.
- Work with a local U.S. contract manufacturer to produce your beauty products tariff-free.
- This allows you to claim "Made in USA" status, which can be a powerful marketing tool.
- Set Up U.S. Warehousing & Fulfillment
- Reduce costs by holding stock in U.S.-based warehouses instead of shipping from the UK/EU.
- Use third-party logistics (3PL) providers to handle domestic U.S. orders efficiently.
- Establish a U.S. Legal Entity
- Setting up a U.S. business entity can provide tax advantages, simplify retail partnerships, and improve supply chain efficiencies.
- However, there are both pros and cons, including regulatory requirements and tax implications that must be carefully considered.
Fast-Track Your U.S. Strategy
At Grow Your Brands International, we specialise in helping UK & EU beauty brands navigate trade barriers, set up U.S. manufacturing, and build resilient supply chains.
· Need a U.S. manufacturing partner? We can connect you with vetted contract manufacturers.
· Looking for warehouse solutions? We help brands establish cost-effective U.S. fulfillment.
· Want a full U.S. expansion plan? Our consulting services ensure you make the right moves-fast.
Contact us today to protect your business from tariffs and secure your place in the U.S. market.