Feature: Global beauty industry frets about U.S. tariff hikes at key trade expo

Some exhibitors noted that the beauty industry is deeply globalized and any disruption in the supply chain -- from raw materials to packaging -- could have significant knock-on effects.

by Xinhua Writers Tan Jingjing, Huang Heng

LAS VEGAS, July 18 (Xinhua) -- International exhibitors at Cosmoprof North America, the region's premier beauty trade show, have voiced mounting concerns about U.S. President Donald Trump's proposed tariff hikes, warning of potential supply chain disruptions across the global beauty industry.

The three-day event at Las Vegas's Mandalay Bay Convention Center has attracted participants from across the world. Behind the glittering displays of skincare innovations and cosmetic technologies, trade policy uncertainties dominated discussions among industry leaders.

Vera Oh, CEO of clean beauty brand VOESH, outlined the financial pressure: "Currently, tariffs are at 10 percent, but Trump has announced an additional 25 percent starting Aug. 1. That brings it to 35 percent -- which is no joke for anyone."

The South Korea-based company, which manufactures vegan skincare products, is exploring cost-cutting measures but finds factory relocation challenging.

"Moving factories to other developing countries could be an option, but it's complicated. It takes at least six months and requires building new relationships and supply chains," Oh explained.

The concerns span multiple industry segments. Elena Carri of American International Industries described the unstable trade environment: "Our products have a variety of countries of origin. Regarding tariffs, there's a lot going on…big conversations, and it's a moving target. Everything changes every day."

She warned that cost increases would ultimately affect the entire value chain from manufacturers to consumers.

Some companies reported buyers changing sourcing preferences due to tariff fears. "Many people told me at the trade show they prefer that the shipment comes from Israel. Even though shipping from Israel may be more expensive, including the tariffs, it's still preferable. Because we manufacture and ship our products from Israel, so we don't have tariffs," noted Lior Eitan, vice president of marketing and sales at Israel-based TruffLuv Global.

Some exhibitors noted that the beauty industry is deeply globalized and any disruption in the supply chain -- from raw materials to packaging -- could have significant knock-on effects.

Industry experts warned that small and mid-sized businesses, lacking the resources to adapt, would bear the brunt of these trade barriers.

Amid the mounting pressures, exhibitors urged a reconsideration of the tariff measures, with Fiji's Debra Sadranu of sustainable skincare brand NAMA Fiji expressing hope for "fruitful negotiations" between her government and U.S. trade representatives to mitigate the economic impact.■