Strategic Inventory Relocation: Beauty Brands Opt for Canadian Warehouses Amid U.S. Tariffs
Cosmetics and personal care vendors on platforms like Amazon and Walmart are relocating inventory to Canada to defer U.S. tariffs on Chinese imports, which can reach up to 145%. By storing goods in Canadian warehouses, brands benefit from tariff exemptions, duty relief, and potential rebates while hoping for a softening of U.S. trade policies. This strategy, though adding $500–$600 per container in costs, is seen as preferable to immediate tariff payments. Logistics firms report a 50% increase in China-to-Canada shipments. With limited U.S. bonded warehouse space and slow global supply chain adjustments, stockpiling in Canada provides a temporary solution for brands anticipating high-demand periods like the holiday season.