New U.S. trade tariffs mean higher costs for UK and EU beauty brands. Is moving some or all of your production to the U.S. the best solution?
The Tariff Impact on Beauty Brands
- UK brands face a 10% tariff on exports to the U.S.
- EU brands face a 20% tariff, making their products significantly more expensive.
- Retailers are unlikely to absorb these costs, meaning brands must act fast to stay competitive.
Key Benefits of U.S. Manufacturing
· Avoid Tariffs – Producing in the U.S. eliminates the extra import duties.
· Faster Shipping – Domestic production reduces lead times and stock delays.
· "Made in USA" Appeal – American consumers value locally made products.
· Easier Retail Partnerships – Many retailers prefer working with U.S.-based suppliers.
· Establishing a U.S. Business Entity – Setting up a legal entity in the U.S. can offer operational and tax advantages, but requires careful planning to navigate regulatory complexities.
How to Transition to U.S. Manufacturing
- Find the Right Contract Manufacturer
- Not all U.S. manufacturers specialise in beauty products, and can vary considerably in MOQ requirements—partnering with the right experts is key.
- Source U.S. Based Ingredients & Packaging
- Switching to local U.S. suppliers helps maintain compliance and speed up production.
- Adjust Pricing & Margins
- Review your cost structure to ensure a sustainable and profitable U.S. strategy.
Need help making the move?
At Grow Your Brands International, we connect UK & EU beauty brands with trusted U.S. manufacturers and trusted partners to help navigate the transition smoothly.
Get in touch today to discuss how your brand can adapt and thrive.