▲ This Yonhap file photo, taken on Feb. 11, 2026, shows a local cosmetics retail store in Seoul. (Yonhap)

 

SEOUL, Aug. 26 (Yonhap) -- The U.S.-Canada tariff war is also affecting the cosmetics industry, with analysts saying prices and supply chains for cosmetics sold in North America could change.

 

The impact on South Korean cosmetics makers is drawing attention, as Canada was the second-largest exporter to the U.S. beauty and skin-care market after South Korea last year.

 

According to Bloomberg News on Aug. 25, the United States began imposing 50 percent tariffs on Canadian products, including cosmetics, on Aug. 22, while Canada plans to impose retaliatory tariffs of 50 percent on some U.S. cosmetics starting Sept. 8.

 

The cosmetics production and distribution networks of the two countries are closely interconnected.

 

A significant portion of products made in Canada are exported to the United States, while global beauty companies also use Canada as a major production base.

 

L'Oreal operates factories and logistics centers in Canada, while Estee Lauder also manufactures products there. Bloomberg reported that Estee Lauder-owned brands such as M.A.C and skin-care brand "The Ordinary" may also be affected by the tariffs.

 

Tariffs do not necessarily lead to immediate price increases, but companies may find it difficult to absorb a high 50 percent tariff over an extended period, potentially prompting price adjustments or restructuring of production and distribution networks.

 

Cosmetics are particularly vulnerable because many products are priced around $10, making them purchases consumers often make without much deliberation. Analysts say higher prices resulting from tariff costs could weaken demand for such impulse purchases.

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