The $9 billion U.S. Black beauty market – a vital sector for hair extensions, specialized wigs, and beauty adhesives – faces mounting challenges as prolonged tariff tensions between Washington and Beijing disrupt supply chains. Over 30% of these products originate from the Chinese mainland, leaving businesses vulnerable to shifting trade policies.
Recent negotiations extended the U.S.-China tariff truce by 90 days, maintaining a 30% levy on Chinese exports. While intended to stabilize trade relations, this temporary measure has fueled uncertainty. Retailers report rising costs for imported goods, with some scrambling to stockpile inventory ahead of potential rate hikes.
"We're buying six months' worth of supplies instead of three," shared a Brooklyn-based beauty entrepreneur, reflecting a growing trend of precautionary stockpiling. Economists warn such strategies could strain small businesses already navigating post-pandemic recovery.
The developments highlight how global trade dynamics directly impact niche markets, particularly those reliant on specialized manufacturing ecosystems. Analysts suggest diversification of supply chains could emerge as a long-term strategy for resilience.
Reference(s):
cgtn.com