Copyright Newsweek
“Deodorant getting kinda pricey..” a post on X viewed over 3 million times reads. That viral post has prompted a discussion online about the fact that deodorant is getting more expensive. So, are deodorant and other essential personal care products rising in price, and what’s driving the increase? Why It Matters President Donald Trump announced sweeping tariffs early in his second term, which have in turn made goods more expensive for American consumers. Trump has said that these tariffs are necessary to restore U.S. manufacturing and erase the trade deficit with other countries. Beyond the impact of tariffs, consumers are coping with cost-of-living pressures and inflation. In September, the Consumer Price Index, which is a key measure of inflation across the U.S. economy, rose by 0.1 percent. This brought the annual inflation rate up to 3 percent, compared to 2.9 percent in August. Though it is far lower than its pandemic peak, inflation does still remain above the Federal Reserve’s target rate of 2 percent. What To Know In August, it was announced that Trump’s 50 percent tariff on imported steel and aluminum products had been expanded to cover a further 400 additional categories. This expanded tariff list took place that month. In a news release issued at the time, Jeffrey Kessler, Commerce Department secretary for industry and security, said, “Today’s action expands the reach of the steel and aluminum tariffs and shuts down avenues for circumvention—supporting the continued revitalization of the American steel and aluminum industries.” And, one of the products hit by this is deodorant. Social media has picked up on this and prompted a conversation about the rise in the cost of everyday items. But, according to Professor Jagmohan Raju, a professor of marketing at the University of Pennsylvania and the executive director, Wharton Co-Sponsorship of Indian School of Business, it’s not just the tariffs that are to blame. “Most beauty products have high price cost margins, so steel and aluminium tariffs may not be the reason for price increases, as the steel and aluminium as a fraction of their price is low,” Raju told Newsweek over email. Raju continued, adding, “Price cost margins in deodorants are high. For premium deodorants, the brand can make 50-60 percent margins, and on top of that, the retailer may make 20-25 percent in many cases. So a premium deodorant that may cost $1 to make may sell for $10. If tariffs increase costs by 20 percent, that is a 20-cent increase. Even if all of that were passed on to the consumer, the price should go up to $10.20, which is a 2 percent increase.” What People Are Saying Professor Jagmohan Raju told Newsweek over email: “Manufacturers and retailers can put in place a higher price increase because cost increases provide a justification for price increases, and not all consumers understand the economics of each industry. An industry where price cost margins are low, a 20 percent increase in costs justifies, in some cases, a close to 20 percent increase in price to maintain margins, but deodorants is most likely not one of them.” Social media user @Hereforfoolery2, in a post on X viewed 3.4 million times: “Deodorant getting kinda pricey..” Social media user @TheDarksinGirl, replying to @Hereforfoolery2 in a post on X viewed 2.8 million times: “Steal it if you have to, PLEASE.” Social media user @TreyPfromCali, replying to @Hereforfoolery2: “Yall better pay it too.” What Happens Next Looking ahead, Raju told Newsweek, “As prices of other goods and services are going up due to cost increases, sellers of beauty products may be using this as an opportunity to increase prices of their products as well.”
