How Tariffs Between Canada and the U.S. Could Impact Your Salon, Spa, or Barbershop

ByGreg Robins
BeautyCouncil podcast promotional graphic featuring Episode 19 of "The Business of Style Podcast" with Greg Robins. On the left side, text appears on a light blue background, stating the episode details. On the right, there is a smartphone displaying an episode preview. The screen shows a woman holding a red coffee cup with a Canadian flag logo, alongside the text: "Tariffs: how they work and how to lessen the impact on your business." Below it is a "Listen today" button. The BeautyCouncil website link, "beautycouncil.ca," appears at the bottom left.

New tariffs between Canada and the U.S. could mean higher costs for salons, spas, and barbershops. Here’s how they work, how they might affect your business, and what you can do to stay ahead.

What Are These Tariffs and How Do They Work?

A tariff is a tax placed on imported goods by a country’s government. The goal? To encourage domestic production by making foreign products more expensive. The U.S. is planning a sweeping 25% tariff on Canadian goods, meaning that anything from Canada heading south will be more expensive for American buyers. In response, Canada may impose retaliatory tariffs on American products entering Canada.

For the beauty industry, this could mean higher costs on products moving across the border. Whether you’re importing American-made products or exporting Canadian-made ones, these tariffs could impact your bottom line.

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How This Could Affect Your Business

  1. Higher Prices on U.S. Beauty Products
    • If you stock or use American-made products, expect price hikes as suppliers pass extra costs on to you.
    • A $10 bottle of shampoo imported from the U.S. could cost 25% more, which means higher costs for your salon.
  2. Rising Costs for Canadian Brands
    • If a Canadian manufacturer exports to the U.S., they may have to lower their prices for American buyers. To stay profitable, they could increase prices at home—meaning you might pay more for Canadian products, too.
  3. Delayed Impact, But It’s Coming
    • Tariffs don’t change prices overnight. Many suppliers have existing stock bought at old prices, meaning price hikes could start appearing 2–3 months later.

How to Prepare and Protect Your Business

Now is the time to plan. Here’s what you can do:

1. Review Your Product Sources

  • Check your inventory and identify products imported from the U.S.
  • Look for Canadian-made alternatives or products from Europe, Korea, Australia, or South America that aren’t affected by tariffs.

2. Buy in Bulk Before Tariffs Hit

  • If you can’t replace certain American products, consider stocking up before prices rise.
  • Ask suppliers about locking in current pricing with pre-orders or contracts.

3. Diversify Your Product Portfolio

  • Reduce your reliance on any single supplier or single country.
  • Carry a mix of domestic and international products to keep pricing flexible.

4. Talk to Your Distributors

  • Ask if they offer bulk discounts or alternative brands that aren’t affected by tariffs.
  • See if they have strategies to help you navigate upcoming price changes.

5. Adjust Your Pricing Strategy

  • Decide whether to absorb some of the costs or pass them on to clients.
  • Be upfront with clients if prices must go up and highlight the value of your products.

6. Stay Informed

  • Keep up with tariff updates to stay ahead of changes.
  • The BeautyCouncil will provide ongoing updates so you don’t have to track policies on your own.

7. Manage Inventory Wisely

  • If prices rise, adjust your orders to stock up on high-turnover items before costs increase.
  • If possible, avoid over-ordering on items that may be hit hardest.

8. Be Transparent with Clients

  • If prices go up, let clients know why—most will understand.
  • Position Canadian or alternative products as eco-friendly or supporting local businesses to create a positive message.

How Will Your Clients Be Affected?

  • Some clients may tighten their budgets—especially those working in industries like forestry, tourism, or manufacturing, which could be directly affected by tariffs.
  • Be mindful that clients may book less frequently or cut back on retail purchases if they’re feeling financial pressure.
  • Keeping open communication and offering different price points can help maintain client loyalty.

Final Thoughts

Tariffs can shake up pricing and supply chains, but they don’t have to derail your business. With smart planning, flexibility, and strong supplier relationships, you can keep costs under control and maintain a strong service offering.

Have questions? Need support? The BeautyCouncil is here to help. Stay connected with us for the latest updates and strategies to navigate these changes.

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