E.l.f. Beauty is setting the standard for Trump tariff refunds. Will other brands lower their prices?

By Alessandro Carrara | Published: 3-Jun-2026
Finance

E.l.f. Beauty plans to reinvest $58 million in US tariff refunds and reduce prices on certain products, after increasing the cost by $1 in 2025. But is it feasible for other beauty businesses to follow suit?

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US President Donald Trump’s sweeping tariff hikes in 2025 caused chaos across the globe, placing immense pressure on trade and elevating retail prices.

These so-called ‘Liberation Day’ taxes came into effect in April 2025, imposing a 10% tariff on all countries, along with individualised rates affecting specific locations. 

The beauty industry was a casualty of the tariff hikes during this time, with brands and manufacturers scrambling to control the situation by raising the cost of their skus. 

A Supreme Court ruling that US President Donald Trump had incorrectly used the International Emergency Economic Powers Act (IEEPA) to levy the double-digit tariffs, prompted companies to sue the US Government and claim back the costs.

E.l.f. Beauty has become the first beauty business to publicly announce plans to reinvest US$58m in US tariff refunds and reduce prices on certain products after increasing their cost by $1 in 2025.

So what exactly is the situation for the beauty industry and tariffs in 2026, and should brands respond similarly to e.l.f. Beauty?

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