On Pause For Now, Canadian Beauty Brands Voice Opposition To Trump’s Tariffs

While exhibiting at Shoppe Object, a New York home and gift trade show, over the weekend, Sheena Brady, founder of Tease, an Ottawa-based wellness tea brand with over 40% of its customers in the United States, was immediately affected by President Donald Trump signing an executive order on Saturday to impose a 25% tariff on goods imported from Canada and Mexico.

“Instead of engaging with buyers excited to discover and place orders, we were met with hesitation and a lot of ‘I’m sorry’ comments. Many were more interested in talking about politics rather than products,” she says. “There was some reluctance to commit to opening orders, which is rare for us at these events. That kind of uncertainty is deflating for brands like ours that rely on export partnerships to grow.”

Canadian beauty and wellness brands were relieved Monday that the uncertainty has been lifted, at least for the moment, as Trump came to agreements with Prime Minister Justin Trudeau of Canada of President Claudia Sheinbaum of Mexico to delay tariffs on imports from their countries for a month. Trudeau and Sheinbaum previously vowed to retaliate against the U.S. with their own tariffs if the U.S. proceeded with imposing tariffs.

As Canadians rallied around Canadian brands in response to President Donald Trump’s threat of tariffs on Canadian imports to the U.S., the skincare brand Three Ships saw its e-commerce sales rise 50% on both Saturday and Sunday.

Still, with the threat of a trade war hanging over them, Canadian beauty and wellness brands wonder about the fate of their businesses in the U.S., the largest importer of Canadian beauty products by far. “It’s important to understand the implication of tariffs and that tariffs levied by both countries ultimately impact consumers,” says Lisa Mattam, founder of Toronto-based skincare brand Sahajan. “Prices will rise in order for brands to help curb the economic impact and choice will be minimized as retailers and brands start choosing regions in which to invest.”

Nancy Wingham, co-founder of Nuez Acres, a skincare brand from Langley, British Columbia, is watching the trade battle unfold as she prepares to place her products in Fred Meyer stores in March. UNFI distributes Nuez Acres in the U.S. With the tariffs on pause, Wingham is holding off on price hikes, but may consider them in the future.

“The tariffs add a significant challenge as we scale. We’re closely monitoring the situation and working with our distributor to navigate potential changes,” she says, elaborating, “Despite the challenges, I’m feeling optimistic and extremely excited. The U.S. market presents a huge opportunity, and we’re focusing on in-store demos, trade shows, and targeted advertising to drive awareness and sell-through. That said, we’re keeping a close eye on costs. Without outside investment, it’s crucial that we scale at a sustainable pace.”

“We need advocacy, collaboration and creative solutions.”

Prior to Trump pushing the tariffs off, Canadian beauty and wellness entrepreneurs banded together to voice their opposition to the U.S.’s escalating protectionism and showcase Canadian brands. Along with the tariffs, the entrepreneurs decried the removal of the de minimus exception included in Trump’s executive order. The exception allows shipments to the U.S. valued under $800 to skip duties and has been a boon for cross-border e-commerce.

“Supporting Canadian brands shouldn’t just be about encouraging consumers to buy Canadian, it’s also about ensuring that Canadian businesses can continue to sell beyond our borders,” says Brady. “Right now, we need advocacy, collaboration and creative solutions. We’re urging our U.S. customers and retail partners to engage in conversations with lawmakers, understand the impact of these policies on small businesses and work with us to find ways to navigate this challenge together.”

Trump has long railed against the U.S.’s trade imbalances with other countries—the trade deficits with Canada and Mexico were estimated at $64.26 billion and $152.4 billion in 2023, respectively—and identified tariffs as a solution to them. However, the stated rationale for imposing tariffs on Canada and Mexico is to curb immigration and fentanyl smuggling, and Trump declared concessions in those areas led to the delay of tariffs.

Canadian brands like deodorant brand Undercarriage have been proudly proclaiming that they are made in Canada in response to Trump’s trade war.

Oscillating between trade deficits and surpluses with the U.S., the Canadian beauty industry is heavily dependent on the American market. According to BACI data in Canadian dollars, Canada imported $1.19 billion worth of American beauty goods and exported $1.05 billion worth of beauty goods to the U.S. in 2022. In October last year, Canada exported $139 million in beauty products to the U.S. and imported $97.5 million in beauty products from it.

To stave off damage that might be inflicted to their sales by tariffs, countless Canadian beauty and wellness brands have been imploring customers to stand behind them. On Monday, Three Ships posted a social media message asking its fans to share its favorite beauty products from the Toronto-based skincare brand and leave a review. Already, they sent its online sales up 50% on both Saturday and Sunday.

Well before the executive order, Three Ships had been preparing for tariffs by shipping three months’ worth of inventory to its U.S. warehouse in advance of Trump’s inauguration on Jan. 20 and beginning a review of its prices to determine the extent of price hikes necessary to cover the costs of tariffs. It’s been commiserating with 28 other Canadian beauty brands in a WhatsApp group to help it determine the best courses of action.

“This trade situation sucks a lot, but we will weather the storm.”

On Friday, in an effort led by Jayme Jenkins, co-founder of the eco-friendly haircare brand Everist, the brands in the WhatsApp group joined forces to introduce Indie Beauty Collective, a platform inviting consumers to discover and shop products from Canadian indie beauty startups. In addition to Everist, Sahajan and Three Ships, Canadian brands highlighted by the Indie Beauty Collective include Ember Wellness, Wildcraft, Bathorium, Mimar, Elate, Paume, Province Apothecary, Okoko Cosmetiques and Lohn.

“As a Canadian brand with a global focus, we’re used to feeling like the underdog. Many networks, resources and opportunities have been harder for us to access. But, as a result, it’s caused us to work harder, be scrappier and think outside the box, which has resulted in some major product innovation, but also innovation and creative thinking in how we run our business,” says Jenkins. “Yes, this trade situation sucks a lot, but we will weather the storm, diversify our supply chain even further and come out of it showing that Canadian beauty is resilient and world class.”

Canada is the birthplace of several beauty brands well-known to American beauty enthusiasts, among them MAC, The Ordinary, Ilia and Nudestix, and Canadian beauty and wellness brand founders report that they’ve been receiving encouragement from American consumers as they guide their businesses amidst the tariff drama. Outside of Canada and Mexico, Trump’s executive order imposes a 10% tariff on China, and he’s vowed to impose tariffs on European imports next.

Canadian indie beauty brands joined forces to launch the website Indie Beauty Collective on Friday to invite consumers to discover and buy their offerings.

Noting “Founded in Canada” and “Made in Canada” taglines are appealing to consumers rallying behind Canadian brands, Mattam says, “I got the most incredible series of texts last night from a U.S. influencer who is a sincere fan of our brand asking how she could help, sending me suggestions to navigate and offering incredible words of support. Our communities are the reason we started, and I am confident that they will continue to support us.”

Even if Trump kicks the implementation of tariffs further down the road or reverses course on them, Canadian beauty and wellness entrepreneurs believe the U.S.’s break from international trade norms could cause lasting damage to the relationship between Canadian companies and the U.S. Connie Lo, co-founder of Three Ships, says, “Looking ahead, I think new Canadian companies will approach the U.S. market with more caution. This situation has been a reminder that, no matter how much you prepare, unexpected challenges can arise.”