Navigating Changes in Tariff Policy: What Businesses Need to Know
In a landscape characterized by constant change, recent developments in U.S. tariff policies are causing significant shifts for various industries, particularly in beauty, fashion, and wellness. As businesses grapple with already established tariffs, the implications of new policies can lead to uncertainty and complex decision-making.
Understanding Recent Tariff Changes
In April 2025, President Donald Trump introduced a reciprocal tariff plan, dramatically increasing import taxes for select countries—some as high as 145%. This announcement, labeled “Liberation Day,” sent shockwaves through the beauty, fashion, and wellness sectors, leaving leaders scrambling to strategize for the future.
Tariffs have become a substantial source of revenue, with the U.S. government reportedly collecting over $30 billion in duties in January 2025—more than double the amount from the previous year. However, a recent Supreme Court ruling has upended this approach by deeming these tariffs illegal under the 1977 International Emergency Economic Powers Act (IEEPA). While this ruling does not prevent the president from enacting tariffs altogether, it indicates that the current framework lacked the necessary authority.
The Aftermath of the Supreme Court Decision
The implications of the Supreme Court’s ruling are profound. Following the decision, President Trump issued an executive order imposing a new 10% tariff on imported goods, stating intent to raise it to 15%. However, as of the latest updates, the U.S. Customs and Border Protection reverted this to a standard 10% import charge, with the potential for changes ahead.
In light of the ruling, many brands are now grappling with what this means for their financial strategies. House Democrats are working on a legislative proposal that may allow businesses to reclaim the tariffs that were invalidated. Estimates suggest the government collected around $175 billion in tariffs since the implementation of IEEPA.
Insights from Industry Experts
In a recent discussion hosted by Glossy Beauty Podcast’s Lexy Lebsack, industry experts Danny Parisi and Emily Jensen provided valuable insights into the evolving landscape of tariffs.
On Planning for Refunds: Jensen highlighted a brand founder who estimated losses of about $100,000 in tariffs. While some companies are eager to pursue refunds, others hesitate, concerned about the costs and time involved in the recovery process. Large corporations like Revlon and Costco are already engaging in legal action to recover these costs, a feat easier for them due to substantial legal resources.
Initial Brand Reactions: Parisi described the overall sentiment as one of “cautious optimism.” Brands are weary of the ongoing fluctuations in tariffs and would prefer a more stable environment. The erratic nature of the recent changes—going from a 10% to a 15% tariff and back again—has left many frustrated.
What Lies Ahead
During the State of the Union address, President Trump hinted at potential new tariffs, leading to speculation and concern among brand leaders. He suggested that foreign-produced tariffs might alleviate domestic tax burdens, a shift in rhetoric that could become a defining talking point moving forward.
Conclusion: Staying Adaptable in Uncertain Times
As businesses navigate these unpredictable tariff waters, staying informed and adaptable is crucial. Companies should consider formulating contingency plans to address potential changes in tariff policies while remaining engaged in dialogues with lawmakers about potential refunds. Building resilience in operations and financial strategies can help alleviate some of the uncertainty as this financial landscape continues to evolve.
