The beauty of the elf is committed to manufacturing in China despite tariffs
Elf Beauty, an affordable cosmetics company.Elf) For a long time, we have relied on China to keep prices low and create value-oriented “deceiving” for high-end products.
Now, President Trump’s economic agenda is testing that model.
ELF sources 75% of its products from China and is exposed to higher costs from Trump’s tariffs (but less than in 2019).
In addition to the extensive tariffs Trump collected in his second term, the Elves face 25% tariffs on products supplied by China Trump was collected in 2019. The latest 30% tariffs Trump has imposed on Chinese goods and Under legal scrutinyELF’s imports into the US were subject to tariffs at the 55% level.
Unlike other companies that pivoted aloud to America’s Onshirling to avoid it. It is chosen by the presidentCEO Tarang Amin said in a call to the company’s revenue, ELF is committed to Chinese suppliers.
“We see our unique China-based supply chain as a field of competitive advantage that we’ve hone for the past 21 years,” Amin said. “It supports our value proposition and provides the best combination of quality, cost and speed in the industry. We are… committed to our team and suppliers in China.”
However, tariffs create a challenging situation for businesses that take pride in the affordable factors.
The Elf recently took a rare step in announcing a $1 price increase on all items that begin in August. In an interview with Yahoo Finance Thursday, ELF Beauty CFO Mandy Fields did not say whether ELF will keep prices down if tariffs are excluded.
“From a tariff perspective, there are consequences in that range,” Fields said (see video above). “Pricing is one of the levers in the toolkit, but we are also looking at supply chains to optimize it, and we are also looking at diversifying our business thinking about tariff easing.”
Beauty Company also announced for $1 billion to acquire Road, a consumer skincare brand founded by Haley Beaver. One reason given to the transaction was to help ELFs move their supply chain away from China.
Elf Beauty Stock rose 23% on Thursday after its announcement.
Many beauty brands are back in the drawings in the hopes of reaching out to their suppliers and finding new efficiencies and finding ways to deal with tariffs.