President Trump announced on April 3, 2025, the imposition of 'reciprocal tariffs' on all U.S. imports, set at a minimum rate of 10%. This regulatory action creates a direct cost headwind for companies with significant international supply chains.
e.l.f. Beauty, which sources approximately 75% of its global production from China, is particularly exposed to these new tariffs. The company had previously indicated that such tariffs could impact its gross margins.
This development introduces significant uncertainty into e.l.f. Beauty's financial outlook, as the company will need to implement strategies such as price increases, supply chain diversification, and cost savings to mitigate the impact of these increased duties.
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