Key Takeaways:Small beauty brands face rising packaging costs as tariffs drive a $202B burden.Aluminum-heavy components are especially exposed.Price increases and sustainability trade-offs are likely through 2026.New data from the U.S. Census Bureau and the U.S. Chamber of Commerce underscores the scale of the tariff shock facing American small businesses, and the implications extend well beyond traditional manufacturing sectors. In 2023, more than 235,000 small business importers brought goods valued at more than $868 billion into the US. Applying newly announced country-level tariffs, the Chamber estimates these businesses could face an annual tariff burden of $202 billion if import volumes remain unchanged.While the figures span industries, the beauty sector is particularly exposed. Packaging components, especially aluminum tubes, caps, aerosol cans, and closures, are frequently imported as finished or semi-finished goods, even when final product assembly happens domestically.With tariffs on imports from China reaching 55%, Brazil at 50%, Switzerland at 39%, and India at 25%, the cost of sourcing packaging materials is rising sharply, especially for indie and mid-sized beauty brands that lack the scale to absorb sudden cost increases.The pressure is already moving through the supply chain. Census Bureau surveys show manufacturers, wholesalers, and retailers increasingly reporting higher prices for goods and services, followed by gradual price increases passed downstream. Roughly 56% of US imports consist of raw materials and intermediary goods; manufacturers, including beauty brands, are among the first to feel the impact.